LSR Group obtains financing for new brick plant
04 July 2011
North-West bank of OJSC Sberbank of Russia and OJSC Pobeda LSR (a subsidiary of LSR Group) signed a General agreement to open a credit facility worth RUB 6.273 bn maturing in 10 years. The financing is to cover equipment supply, construction works and other expenses for the brick plant in the Kirovsky district of the Leningrad region.
The new brick plant with the annual production capacity of 220 million bricks is the second “greenfield” project by LSR Group. Currently the company is completing construction of the main buildings.
The plant will have 3 production lines with the following annual capacities:
- porous bricks line - 120 million items;
- specialized ceramic items line - 25 million items;
- facing bricks line - 75 million items.
The total amount of investment is estimated at RUB 10.2 billion (including VAT).
Pobeda LSR has already signed contracts for the equipment supply with HÄNDLE GmbH Maschinen und Anlagenbau, HANS LINGL Anlagenbau und Verfahrenstechnik GmbH & Co. KG and TECTON GmbH Keramikanlagen.
By the end of the year the company intends to select the supplier of the equipment for the 3rd production line manufacturing facing bricks.
The new advanced plant will allow the company to manufacture high-quality products at lower costs and to free a large land plot suitable for mass-market housing development .
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.
North-West Bank of Sberbank of Russia operates in 7 subjects of the Russian Federation: St. Petersburg, Leningrad region, Kaliningrad region, Murmansk region, Pskov region, Novgorod region and the Republic of Karelia. North-West Bank of Sberbank has currently the largest branch of more than 1,000 offices in the region.