Business news from Ukraine

Business news from Ukraine

OMZ Karpaty to produce 300 grain cars

14 May , 2024  

In 2024, the Karpaty Research and Mechanical Plant (Lviv region) will produce 300 grain carriers at the request of the USAID Economic Support for Ukraine project, which will account for 45% of the company’s annual workload, the donor organization’s press service reported on Facebook.

The USAID reminded that in 2023, at their request, the plant manufactured 50 such cars for one of the largest grain market operators in Ukraine, JV Nibulon LLC (Mykolaiv). In 2024, the Project ordered 300 railcars for other companies involved in the export of agricultural products.

According to the report, OMZ Karpaty produces three railcars per day weighing 23.5 tons. The main component of the car body is rolled metal of European origin purchased from Ukrainian suppliers. The rest of the components, such as the railcar axle, solid-rolled wheel, side frame, beam, shock and traction device, brake equipment and other parts, are made in Ukraine.

“During a full-scale war, orders for grain cars account for 75% of what we do. Thanks to the USAID project, we received an order last year and fulfilled it on time: we manufactured 50 railcars. This means that 650 of our employees had jobs, received salaries, and we, as a business, paid taxes to the budgets of various levels on time. This is one example of how international assistance works for the Ukrainian economy,” said Oleksandra Bodor, Marketing Director of OMZ Karpaty.

According to him, the plant currently has a portfolio of orders through August 2024. In addition to grain carriers, another promising area is the production of cement carriers needed to restore Ukraine’s critical infrastructure and housing stock.

“In 2023, all (three) railcar manufacturing plants in Ukraine produced 1967 railcars. OMZ Karpaty became the leader: the company produced 567 railcars for the Ukrainian market, which is 5% more than in 2022. Today, the company employs more than 650 people,” the donor organization said.

As reported, the USAID project is implementing the Agricultural Resilience and Livelihoods Program (AGRI-Ukraine), with a budget of $350 million. Within the framework of the AGRI-Ukraine initiative, the USAID project cooperates with public and private enterprises to attract investment in grain transportation and transshipment.