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SCM will develop the new seams

13.09.2013

Yesterday it was announced about the entry of Mining Machines Company into the market of Poland and opening of their representation office in Katowice. According to Company’s considerations 20-t shearer for low seams development as well as 40-t tunneling machine are considered as the most attractive and advanced products for the market of Poland. Potential customers have been interested with this equipment during international trade fair on mining, energy and metals in Katowice. Ukrainian Company expects to cover 30% of market due to the most optimal value for money factor, compared to their main competitors: Famur, Kopex, Joy. According to the calculations, performed by Ukrainian Company, the overall investment volume of Polish Mining Companies in equipment purchasing is amounted to about EUR 850 mln.


Last year Yevgeniy Romaschin, CEO of Ukrainian Company, has already indicated that his Company is focused on the production of the equipment for seams, as the deposits of medium or long seams are petered out all over the world. Apart from Poland Mining Machines Company has its Trade Companies in Russia, Kazakhstan and Vietnam. "Export development is the strategically important direction for our Company. We are expecting to increase our export share in the overall company revenue rate up to 40% by 2016," as Yevgeniy Romashchin quoted in Mining Machines Company message.


The market of Poland is prospective enough for mining equipment sellers, as Poland occupies the 9th place in coal extraction and its deposits, indicated Alexey Andreychenko, senior analyst of "ART – Capital", investment group. As Ivan Dzvinka, analyst of Eavex, investment company, mentioned, at the report of one of the biggest polish upstream players —Bogdanka Company — it is forecasted to have double growth in coal mining during the next 7 years, and its own share — from 14% to 20%. "It gives us the assumptions to believe that the Companies will be in need for the permanent renovation and extension of mining equipment fleet. In order to pretend for the relevant orders, Ukrainian Company is bound to establish the representation office in the country as it was strictly requested by the bidding documents in Poland"— stated Mr. Dzvinka. The entry into this market is very important step for Mining Machines Company not only for sales rates increasing, but also in export income growth in foreign currency that will be a certain protection from cash flow devaluation, considering the UAH devaluation forecasts, stated the analyst.


Dmitriy Marunich, director of Energy Strategies Institute believes that the prospect of Ukrainian Company will depend on the aspect, to what extent their products will be cheap in comparison to their competitors. According to his vision, good logistics can be the important aspect. But as Alexey Andreychenko indicated, Mining Machines Company products were not the most affordable in the market. Last year Gorlovsky engineering works (Mining Machines Company —"Ъ") realized tunneling machines with the average price UAH 7.5 mln. per unit, while Kopeyskiy engineering works, Russia, which has already sold in Poland, realized the similar products at Ukrainian market with the price of UAH 5.7-6.5 mln." said Mr. Andreychenko. 


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