To streamline the Group’s management structure and financial costs the Board of Directors of LSR Group approved the decision to establish a new business division within the Group, LSR Moscow, which will manage the Group’s assets in Moscow comprising building materials and real estate development.
LSR Moscow will exercise the coordination and general management of the subsidiaries located in Moscow: OJSC Zavod ZhBI-6 (reinforced concrete production), four concrete plants of OJSC Obyedineniye 45 in Moscow (ready-mix concrete production and delivery) and CJSC Mosstroyrekonstrutsiya (real estate development). Ivan Romanov who was appointed Head of LSR Moscow is also General Manager of CJSC Mosstroyrekonstrutsiya.
Igor Levit, CEO and Member of the Board of Directors of OJSC LSR Group commented:
“It is more important today than ever to promptly respond to the constantly changing conditions of the economic and market situation. In our view, the restructuring currently underway will have a most positive effect on the speed of decision-making thus enhancing the competitiveness of our assets in Moscow and the Moscow region. The territorial remoteness of the head offices of our business units in St. Petersburg from their branches in Moscow did not always enable us to do that quickly enough. Besides, the integration of building materials companies and real estate developers into the new division will help us to achieve a higher synergy effect now in the Central Region of Russia as well. An important factor considered when taking the decision was that the establishment of a new division will result in minimizing management costs through eliminating duplicate functions and also reducing transportation costs.”