LSR Group acquired 93.44% of one of the largest facing bricks manufacturers - OJSC Pavlovskaya Keramika. The contract value is RUB 1.238 billion.
Today Pavlovskaya Keramika is one of the most advanced brick manufactures in Russia. The plant produces facing bricks since 1970 and was significantly modernized in 2006-2008: obsolete buildings were substituted with new workshops, fully automated manufacturing process was implemented as new engineering systems and equipment by Keller HCW (Germany) and Bedeschi S.p.A. (Italy) were installed. The plant was re-built almost from scratch.
The plantís annual production capacity is 70 million bricks. According to our estimates, as soon as the plant reaches full-scale production it will obtain 17% share in the facing brick market of the Moscow region.
The plant offers facing bricks of 10 textures and colours, which may vary due to the multi-optional kiln. The plant produces high quality facing bricks of perfect shape and it is possible to maintain the same brick colour from batch to batch, which is new for the Russian market. The produced items are packed for shipment according to the European standards.
Pavlovskaya Keramika plant is located in Pavlovskiy Posad (Moscow region), 62 km from Moscow. The plant site comprises a production facility, a warehouse, and administrative buildings. Moreover, the plant has its own park of vehicles including excavators, bulldozers and trucks. The number of employees is 130 people.
Raw material for the new plant will be supplied from the clay deposit of LSR Group located in Ozherelye, Kashirsky district of the Moscow region.
The plantís products are in high demand and supplied not only to its local market Ė the Moscow region, but also to other regions of Russia, including Central, Southern and North-West Federal districts, in particular to St. Petersburg, Vladimir, Ryazan and Vologda regions.
Alexander Vakhmistrov, CEO and Chairman of the Executive Committee of LSR Group, comments:
"LSR Group is the largest ceramic bricks manufacturer in Russia. Earlier our brick production facilities were located only in St. Petersburg and the Leningrad region and we were shipping our bricks to the Moscow region. Now we have a modern production facility in the Central Federal district, which allows us to strengthen our positions in the Moscow region and, following our strategy, to become the market leader."
Note to Editors:
OJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are production of building materials, real estate development and panel construction.
LSR Group's main operations are located in St. Petersburg, Moscow, Yekaterinburg and Ukraine.
In 2010, the sales revenues of LSR Group were RUB 49,950 million (IFRS).
LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX and RTS.