LSR Group streamlines management structure
15 December 2011
LSR Group (LSE: LSRG; MICEX, RTS: LSRG), one of the leading construction companies in Russia, started consolidation of its aggregates and ready-mix concrete business units into single one.
The consolidation is aimed to streamline management structure and business processes, which will increase sales volume and improve customer-orientation of LSR Group’s subsidiaries’ – leading producers of ready-mix concrete and aggregates in St. Petersburg and the Leningrad region.
Vasily Kostritsa, previously the Head of LSR Group crushed granite BU, was appointed Managing director of the new business unit. He has more than 15-years experience in the construction industry and 12 years – in LSR Group.
Alexandr Vakhmistrov, CEO, Chairman of the Executive Committee of LSR Group, comments:
“Consolidation of production assets into one business unit will create new opportunities for business development, allow us to benefit from the scale of operations and reduce the expenses. This change is also aimed to improve the new company’s customer-orientation as in most cases customers buy both sand and crushed granite. So, it will be more convenient to buy aggregates from the single company. On the other hand, aggregates are basic raw materials for production of ready-mix concrete which completes an integrated chain of building materials within the same company. If the company supplies raw materials and bears responsibility for the final product’s quality it can better understand its customers’ needs.”
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. Nowadays LSR Group is one of the largest real estate development and building materials producing companies in Russia. 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. As of 31 December 2010 (according to DTZ Russia), the net sellable area of the projects in LSR Group’s real estate portfolio is equal to 8.4m m2 with the market value of RUB 104bn.
In 2010, the sales revenues of LSR Group were RUB 49,950m (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.