US$150m cement plant in Leningrad Region on the cards, Russia

US$150m cement plant in Leningrad Region on the cards, Russia
Published: 24 May 2005

St Petersburg-based construction company LSR Group is considering an option to build a cement plant worth between US$100m and $150m in Russia’s Leningrad Region jointly with one of the world’s largest producers, the group’s First Vice President Igor Levit told reporters Monday.  

"At the moment we are in talks with the largest cement producers," Levit said without specifying any particular company.  

The talks are to be completed by the end of 2005, he said.  

The plant’s construction is to take 2.5-3 years, he said. The plant is expected to have an annual production capacity of between 1Mt-1.5Mt of cement, he said.  

LSR Group is ready to finance 25% to 30% of the project, while its Western partner is expected to receive 50-75% of the plant’s charter capital, Levit said.   The LSR Group currently accounts for 50% of the construction market in Russia’ North-West Federal District and plans to increase its share to 75% in the future. The group comprises more than 30 enterprises.