On May 27 a gala ceremony took place in Slantsy, Leningrad region to lay the foundation stone for the construction of a new LSR Group cement plant. The new project will help to provide a full-fledged solution to the shortage of cement in Northwest Russia. Phase 1 of the Slantsy project with a capacity of 1.85Mta of cement is to be completed in 2010.
By 2010, the company is to invest approximately US$600m. Subsequently, it is proposed to increase the capacity up to 3.7Mt thanks to a second production line. Currently, the project construction site is fully prepared with all of the necessary infrastructure provided and construction design work started while the equipment design work is nearing completion with the first machines to be supplied as early as in the summer of 2008.
According to governor of the Leningrad region Valery Serdyukov: "The prioritised national project provides for doubling the volume of housing construction. Last year 840,000m2 of housing were completed in the Leningrad region but we need to build 1.7Mm2 annually, ie 1m2 per capita in the region each year. LSR’s new plant will result in entirely eliminating the cement shortage in Northwest Russia."
Mikhail Romanov, Managing Director responsible for new projects of LSR Group, said that "the construction of the cement plant in Slantsy is a project undertaken by three countries represented by their leading companies: LSR Group of Russia, Hefei Cement Research and Design Institute of China, and FLSmidth & Co A/S of Denmark."
Design and construction work is being implemented by a subsidiary of Hefei Cement Research and Design Institute, OOO Cement Northwest, established specifically to implement the construction of LSR Group’s plant in the Russian Federation. The contract amount totals Euro163m. The equipment for the new project is to be designed and supplied by FLSmidth & Co A/S. The contracts signed with the Danish company are worth over Euro128.9m. In addition, the new cement project of LSR Group will provide around 420 jobs and be one of the key taxpayers in the region with annual tax deduction of Euro31m by 2015, LSR Group said.