LSR Group Puts Into Operation New Aerated Concrete Factory in Ukraine

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”.

Notes to Editors:

Aeroc International AS, the aerated concrete subholding company of LSR Group, is the leading aerated concrete producer in Russia, Ukraine and Northern Europe. The company uses a single AEROC trademark in all of its markets – light as air, hard as rock. Five modern plants operate in St. Petersburg (Russia), Estonia, Latvia and Ukraine.

OJSC LSR Group is a diversified construction company founded in 1993 and operating in a number of complementary market segments. Its core business areas are building materials, construction and real estate development. The Group includes enterprises for extraction and processing of aggregates, production and transportation of building materials, and housing construction — from mass market large-panel housing to elite property built after designs made by leading domestic and foreign architects.
LSR Group has operations and offices in a number of cities in the Leningrad region, in St. Petersburg, Moscow, Yekaterinburg, Lithuania, Latvia, Estonia, Ukraine and Germany. LSR Group employs around 18,000 people.
In 2007, the sales revenues of LSR Group (according to the IFRS-based financial statements) were US$ 1,403 million.
LSR Group is a public company, with its GDRs listed and traded on the London Stock Exchange and its shares listed and traded on MICEX and RTS.
LSR Group has two credit ratings: B1; outlook – Stable, assigned by Moody’s Investors Service, and B+; outlook – Stable, assigned by Fitch Ratings. 
In 2007, LSR Group was awarded ‘The Company of the Year’ National Award in the ‘Construction’ category.

For more details please contact:
Press Service, LSR Group
+7 (812) 314-1044
press@lsrgroup.ru
www.lsrgroup.ru