LSR Group upgrades its production capacity in Moscow

24 June 2010

OJSC Zavod ZhBI-6 (a subsidiary of LSR Group) has signed a contract with WECKENMANN (Germany) for the supply and installation of a new reinforced concrete products line. The contract value, including equipment, installation and commissioning, is EUR 2.242 million.

The capacity of the new equipment is 38,000 cub.m of reinforced concrete items per year. The new line will mainly produce solid floors for panel housing configuration. The production line will be installed instead of the obsolete equipment producing currently non-core products for the company. Thus, keeping the current annual production capacity at the level of 170,000 cub.m of reinforced concrete, Zavod ZhBI-6 will significantly change the quality of the production. This will enable the company to increase its output of the exclusive EURO’Pa housing series by 20% and also to complete up to 240,000 square meters of housing per year.

The new production line is one of the latest developments of the German manufacturer,  WECKENMANN-Vollert known for its high processability and effectiveness. The line installation is to be started by Zavod ZhBI-6 under the supervision of German specialists in September this year.  The commissioning and the first production are scheduled for the end of December 2010.

The key advantage of the new line is the ability to fabricate bigger size products that will allow making seamless floors and ceilings in the flats, what happens quite rarely in today’s prefab housing market. Fast mould changeover will ensure the production of items for just-in-time installation so that every customer is sure of the quick construction progress. 

Ivan Romanov, Head of LSR Moscow and  Managing Director of CJSC Mosstroyrekonstruktsiya commented:
“The production upgrade at Zavod ZHBI-6 is necessary due to high demand for the company’s core products - Euro’Pa housing series, as well as low-rise houses “EURO”. Due to the active involvement of LSR Group in Moscow region investment projects, we are to start construction of several Euro’Pa series low- and high-rise neighbourhoods nearby Moscow so the utilisation of our existing production facilities will be high. In addition, an increase in our production volume is determined by external customers’ demand for Euro’Pa. The high processability of the new line corresponds to the development strategy of ZHBI-6 that implies implementing the latest concepts of prefab construction and offering products that meet the needs of the most demanding and sophisticated customers.”

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 2009, the sales revenues of LSR Group were RUR 51,024 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.

OJSC Zavod ZhBI-6, a subsidiary of LSR Group, is a leader in reinforced concrete production in Moscow. Established in 1955, it was merged with LSR Group in 2006. 
The production capacity of the plant working double shift is 170,000 cub.m of reinforced concrete per year, with more than 15 million cub.m of products manufactured over the years of its operation.
The use of flexible reconfiguration schemes enables the plant to promptly produce large quantities of reinforced concrete items. The plant is also capable of manufacturing non-standards products by virtue to its design office that complies with customer’s drawings. The company offers over 1,500 reinforced concrete items including those used for housing and commercial property construction.
In 2009 Zavod ZhBI-6 supplied reinforced concrete items and ready-mix concrete to construction objects and became an exclusive producer of reinforced concrete for a new series of EuroPa houses.
The core business area of the company is fulfilling public procurement orders through supplying its products for the construction of government buildings and social and transport infrastructure. The products turned out by ZhBI-6 have been used for the construction and renovation of the White House (headquarters of the Council of Ministers of Russia),  Mayor’s Office in Moscow, Olympic Games Complex, Poklonnaya Gora Memorial Complex, Tsaritsyno Museum-Reserve, Izvestiya Publishing House, Third Transport Ring, Moscow City International Business Centre.

For more details please contact:
LSR Group Press Service
Tel.: +7 812 314 10 44
Fax: +7 812 458 83 72




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