OREANDA-NEWS. On 15 August 2008 was announced, that a press conference was held at the Interfax-Urals news agency to discuss LSR Group’s plans of development in the Urals region, finalization of acquisition of several companies as well as the establishment of LSR Urals Management Company. LSR Urals will operate as a separate business division and the regional representative office of LSR Group.

The conference was attended by Igor Levit, CEO of LSR Group and Andrey Bibikov, CEO of LSR Urals Management Company.

According to Igor Levit, LSR Group aims at setting up a complete holding company combining, just like in St. Petersburg, such businesses as Real Estate Development and Construction and Production of Building Materials, to enable the group to replicate the unique vertically integrated business model of LSR Group in the Urals region. To achieve this goal, LSR Group has already acquired approx. 87% of shares in OJSC Betfor Reinforced Concrete Factory, Yekaterinburg’s largest prefabricated construction company and producer of reinforced concrete, ready-mix concrete and aerated concrete as well as plots of land with a total area of 60 hectares where the company is planning to implement projects aimed at developing new economy class residential neighbourhoods. In addition, currently LSR Group is finalizing the acquisition of 100% stakes in the authorized capital of the following companies: ZAO NOVA-Stroy, a major real estate development company in Yekaterinburg, OOO PKU NOVA-StroyProekt design office, OOO SMU NOVA-Stroy construction contractor, and OOO Uralscheben, a leading crushed stone producer. The planned investments of LSR Group in boosting the Urals business starting from December 2007 and throughout 2008 are approx. US\\$ 300 million.

Further plans of LSR Group include building up the assets and strengthening the building materials businesses and providing construction services, and more particularly, through enhancing the range with additional products (similarly to the model used in St. Petersburg) including bricks and the rental of tower cranes. The company is also planning to promote a number of its own brands in the Urals market: Aeroc (aerated concrete production), and 45’ (concrete production). It should be noted that 45’ stands not just for a company brand but for a true know-how in the Russian concrete production market. The philosophy behind this business of LSR Group is “concrete at site” i.e. ensuring concrete delivery to the project site within 45 minutes, the timeframe complying with the GOST (Russian State Standard) and allowing to preserve the quality of concrete. For this purpose, the company has its concrete plants distributed along the city perimeter (this business concept is already implemented in St. Petersburg where LSR Group has 7 plants, and in Moscow — 4 plants). In addition, a unique customer online support system is being introduced to enable the customers to place an order from their workplace, be notified once the truck leaves for their site, and to develop an optimal delivery schedule.