LSR secures raw material deposits, Russia

LSR secures raw material deposits, Russia
15 June 2011

The LSR Group has acquired raw materials deposits for cement production in the Central region of Russia.

OOO Cement (a subsidiary of LSR Group) signed a contract to acquire OOO Kazinskoe kar’eroupravlenie. Through this acquisition LSR Group will obtain licenses for clay and limestone deposits in the Ryazan region with total estimated reserves of 240Mt. LSR Group will also obtain freehold rights for 273 hectares of land and leasehold rights for 18 hectares, the latter to be used for cement plant construction.

Future construction site is located just 200km from Moscow, 80 km from Ryazan and 7km from Moscow railroad station, near the source of raw materials used for cement production. Such convenient logistics enables direct access to the Moscow region, Central and Southern Federal Districts’ markets.

Technical requirements for connection to railroad network and federal power grid are already obtained.

According to the market research agency Resheniye, in 2010 cement market volume in the Central region amounted to 15Mt and production volumes at 12.5Mt. Some 80 per cent  of existing production facilities are mostly obsolete and represented by the plants using “wet” technology.

Alexander Vakhmistrov, CEO and Chairman of the Executive Committee of LSR Group, comments: “The new cement plant project in Central Federal District, being a part of our expansion in the Moscow region, is of strategic importance for LSR Group. We believe that our past experience in cement plant construction in the Leningrad region will allow us to complete the new project in shorter period of time.”
Published under Cement News