LSR Group said its OOO Cement unit has entered into a EUR163m construction deal with OOO Cement Northwest as part of a project to construct a cement plant in Slantsy in the Leningrad region.
The company said OOO Cement Northwest will under the terms of the contract act as the general contractor for the design and construction work, which planned to be completed in June 2010.
OOO Cement Northwest is a unit of China’s Hefei Cement Research and Design Institute.
The first phase of the project, which will create capacity of 1.85Mta of cement, is planned to be operational in 2010. The group will invest about $600m in the project by 2010, it added.
Capacity will subsequently be increased to 3.7Mta through the construction of a second production line.