The Kryukov Railcar Building Works (Kremenchuk, Poltava region) reduced production of freight cars by 56% to 773 in the period of January-April 2020, compared with the same period in 2019.
This is stated in a report by the Kremenchug newspaper, the CFTS portal reports.
The company produced 26 passenger cars in the period of January-April 2020, compared with 5 in the period of January-April 2019.
As reported, the Kryukov Railcar Building Works reduced production of freight cars by 46.3% to 455 units in the period of January-February 2020, compared with the same period in 2019. The company produced eight passenger cars in the first two months of 2020, compared with five in in the first two months of 2019.
Earlier, manufacturers and analysts predicted a possible reduction in railcar production in 2020. According to the Aurum Group’s General Director Andrii Zharyi, production of rolling stock in Ukraine has its own pronounced cyclicality, and "2019 was most likely the end of the latest production peak and 2020 could be the year it begins scaling back." The Kryukov Railcar Building Works’ head Volodymyr Prykhodko shares this opinion. According to Prykhodko, 2020 will be a year of stagnation in the freight-car manufacturing market not only in Ukraine, but also in the entire “1520-gauge area.” He believes that demand on the CIS market will continue to fall.
As reported earlier, the Kryukov Railcar Building Works has made structural changes related to development of trade in non-CIS countries and beefed up its personnel in charge if trade in CIS markets in order to avoid the negative consequences of the downturn. In addition, it plans to place a special emphasis on innovation.
As the CFTS reported earlier, the Kryukov Railcar Building Works exported 33% of the cars it built in 2019.