CEO: Russia’s Kamaz to halve 2020 investment plan to 47 bln rbl

ST. PETERSBURG, Jun 18 (PRIME) -- Major Russian truck maker Kamaz plans to cut its 2020 investment program by 50% to 46.5 billion rubles, CEO Sergei Kogogin told reporters at the St. Petersburg International Economic Forum on Thursday.

“At the moment we’ve set the goal of cutting the program twofold,” he said, adding that the program now amounts to 93 billion.

The maker has not halted investment yet and has no plans to do it, the CEO said.

About 50% of the investment program accounts for re-engineering, which will be kept on the planned level by boosting cooperation with its partners within joint ventures, Kogogin said.

The company plans to offer 10 billion rubles of bonds to finance its 2015 investment program, which will be decreased by 29%, Kogogin said, adding that the placement is planned in several tranches worth 2–3 billion rubles and all funds will be allocated to re-engineering. The first tranche will be offered by July.

“We will implement a re-engineering program only with borrowed money, because we have no money of our own,” he said.

Sales of Kamaz may fall 40% on the year to 8,000–10,000 trucks in January–June, Kogogin also said.

“The fall will definitely stand at about 40%, it is better than the market. Sales will amount to 8,000–10,000 (trucks). We expect the second half of the year to be better – corporate clients are waking up, everyone has reined in their purchases,” he said.

(53.8999 rubles – U.S. $1)

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