Zaporozhtransformator cuts production in 2014
Ukraine: In 2013, Zaporozhtransformator (ZTR) cut production by 40%. The factory which specialises in the manufacture of power transformers also reduced orders in the first half of 2014 forcing the company to further reduce production.
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Ukraine: In 2013, Zaporozhtransformator (ZTR) cut production by 40%. The factory which specialises in the manufacture of power transformers also reduced orders in the first half of 2014 forcing the company to further reduce production.
The main problem has been a drop in demand both domestically and in foreign markets where the ZTR proportion is 4 %.
In comparison, the factory produced 564 transformers and reactors with total capacity of 50.3 GVA in 2012 and the year before, the plant increased production by 22 % in comparison to 2011.
“A new round of global economic crisis, the decline in production in other countries importing ZTR products, increased competition, the aggravation of the political situation in Ukraine led to a decline in orders,” the ZTR press release stated. “Orders for transformers depend on the construction and modernisation of electricity-generating capacity,” said Aleksey Andreychenko, Art Kapital analyst. According to him, in 2013 the production of transformers in Ukraine as a whole, increased by 7 % compared to 2012.
Despite the growth rate of the transformers market, ZTR has reduced production by 40 % indicating the decline in demand for products.
The decrease in production was reflected in the financial performance of the Grigorishina Plant. Last year the company’s net profit declined by 2.9 times – up to $ 42 million, in comparison to 2012. Net income of ZTR for the last year has not been released yet.
The ZTR intends to rectify the situation with the production and reach the sales figures of 2008-2011. According to the press release, the ZTR will intensify efforts to find new markets. In 2013, the main export markets for the ZTR were Russia, Armenia, Kazakhstan and India.
Source: dela.ua
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