Russia’s Novoroscement plants sold

Russia’s Novoroscement plants sold
Published: 17 May 2007

Russia’s leading export facilities and an important regional producer along
Russia’s southern market, the Novoroscement complex has recently been sold
by its Russian owners to another local group via the Moscow-based
conglomerate Gazmetalloproekt.
 
Full ownership details are unclear but apparently the sale involves Alisher
Usmanov, the Russian steel and iron ore magnate, who is said to be worth
around US$3bn at the latest count, and his partners. The deal has actually been
marked up to confidant Lev Kvetnoy a mid-40’s entrepreneur with his own
personal worth recently put at over US$1bn.
 
The sale has been reported at close to US$950m with much of the proceeds going to majority owner Oleg
Burlakov, now a long-term resident of Canada, who was earlier linked as
owner to the 2.5Mta Belgorad complex – but now within the Eurocement orbit.
Earlier, Holcim’s Russian affiliates Alpha Cement are also said to have had
a stake in the Novoroscement complex although this has never been fully
confirmed and Alpha was probably squeezed out back in 2004/5.
 
The Novoroscement complex comprises three plants, all close to the
neighbouring deepwater port of Novorossysk, with a combined capacity put at
around 4.9Mta, sales last year close to 4Mta and some excellent long-term limestone deposits. The plant
services the south federal district and especially the Krasdonar region
where it is the monopoly supplier. Novoroscement reportedly achieved export sales in excess
of 1Mt in 2006, selling into various European and African countries.