15 October LSR Group, a leading real estate developer and building materials producer in Russia (LSE: LSRG; MICEX, RTS: LSRG), launched the brand-new aerated concrete factory in Ukraine in the town of Berezan located near Kiev. The investment made is EUR 43m (incl.VAT).
Annual capacity of the new factory is 400 thousands cubic meters of aerated concrete. The production equipment was supplied by German-Dutch HESS AAC-Systems.
Managing Director of LSR Group Georgy Vedernikov commented:
“Launch of the new factory together with the acquisition of the existing local producer of aerated concrete OJSC Obukhiv Porous Concrete Plant which was completed at the beginning of October will allow LSR Group to become the leading producer of aerated concrete in Ukraine”. Besides the product specialization between the two factories will provide us with the opportunity to flexibly and quickly react to changing customer requirements.”
Chairman of the Board of Aeroc International AS Ivar Paplavskis commented:
“Our brand Aeroc is already known in Ukrainian market since 6 months before the completion of acquisition of OJSC Obukhiv Porous Concrete Plant” we were selling its products via distribution. contracts which helped us to obtain the local market knowledge and create the customer base. The acquired OJSC Obukhiv Porous Concrete Plant already has 18% market share in Ukraine”.