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Chezh Investments in Ukraine

Czech lorry maker Avia Ashok Leyland intends s to build a plant in Ukraine, the daily 'Hospodarske Noviny' (HN) reported on Tuesday.

The plant construction is planned but the details will not be published yet, the informational source admitted, adding that a more detailed information could possibly raise the price of land at a potential construction site.

A location is yet to be selected and no decision has been made on the parameters of the facility, according to the data reported.

Avia head Anders Spare refused to say anything on the company's plans, HN said.

In autumn of 2006, when Ashok Leyland bought into Avia, the then head of Ashok indirectly announced that a plant could be built abroad, the paper writes.

Avia was introduced to the market in Ukraine last year by means of the US company Procter and Gamble that ordered 60 vehicles for the distribution of its products on the local market. Avia provided 30 lorries last year, HN said.

Avia sales reached 75 percent to 713 cars last year.

Current year the company intends to increase production to 2,000 units, Spare said.

Avia creates more than 55 combinations of models weighing from 6.5 to 11 990 tonnes. These vehicles do not pay toll that is collected from lorries weighing 12 tonnes and more, the paper said.

Odien Capital Partners took over Avia from the collapsing South Korean car maker Daewoo and sold it to Ashok Leyland Motors of India in 2007 year.

Avia's loss in 2006 reached by a third to Kc965m on sales worth Kc430m.

Sales doubled and loss started decreasing last year, according to preliminary results.



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