2016 KrAZ Trucks Annual Report

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KrAZ Trucks Press Release / January 4, 2016

2015 was a rewarding year for KrAZ Trucks. We withstood blows of financial and political crisis and showed better performance. The total number of vehicles that rolled off the main assembly line in the previous year amounts to 1,401 units (up 101 percent from 2014). KrAZ employees consider this result as great and important victory!

Amid decline in production of motor vehicles, production shutdown in the automotive branch and other industries of the country, domestic and foreign market segments stagnation, sales slowdown, and leap in prices for electricity, gas and components KrAZ remains one of few truckmakers that had dynamical and stable performance.

During 2015 the company showed positive growth rate in each quarter and half-year. The second half-year was more fruitful than the first one: the company built 824 vehicles and reached 43 percent growth. The performance figures achieved in the fourth quarter are the best among results for this year: 417 vehicles. December was the most fruitful month of the previous year: 182 vehicles were delivered to the finished products warehouse, up 53 percent from November 2015’s figure and 7 percent up as compared to the similar period of the previous year. 72 percent of products manufactured in the last month of the outgoing year were intended for export sales, while the rest of vehicles for inner market.

Platform trucks accounted for 58 percent of the total number of vehicles built by the company, chassis cabs for 30 percent, truck tractors for 6 percent, special vehicles for 4 percent, dump trucks for 2 percent. In addition to our core truck products, our Kremenchug Automobile Plant built 21 towed vehicles: 16 trailers and 5 semi-trailers, 75 percent up from the previous year’s result.

All the vehicles built in 2015 by the company were shipped to customers. Export sales account for 40 percent, sales to Ukrainian customers account for 60 percent.

KrAZ’s staff believes that fulfillment of very important government defence order and several foreign trade contracts and contracts awarded through bidding process entered into with Ukrainian and foreign partners is a significant achievement.

In 2015 efforts were made to do a large amount of work to develop new and upgrade mass-produced vehicles. Some new models have been added the lineup, including the KrAZ-5401 4х2 light chassis cab having maximized commonality with various power plants and special superstructures, a range of heavy armored vehicles such as KrAZ-Hurricane (8х8) and KrAZ-Fiona (6х6), the KrAZ-7233С4 8x4 four-axle dump truck, the 4х4 chassis cab with two steerable axles used for conversion into special vehicle.

In addition, Ford engines have been adapted to KrAZ mass-produced vehicles, 15-tonnes trailer has been developed and built, more models have been added to the lineup of special vehicles based on KrAZ chassis intended for use by road maintenance entities of the country.

In 2015, the company was focused primarily on the quality of its products. Many efforts were made to improve the reliability of KrAZ trucks and gather customer feedback.

In 2016, KrAZ Trucks is determined to move forward and do all the best to achieve increase in production and sales, improve benefits package, develop and launch new models in the domestic and foreign markets. Moreover, efforts will be made this year to reduce cost of products, improve production performance and quality of products.

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