OREANDA-NEWS. April 05, 2012. Basic Element, one of Russia's leading and most dynamic diversified business groups, has today announced the completion of its construction division reorganization. The reorganization aims to establish Basic Element as a leader in building materials production and infrastructure construction. The restructure will also place the group among the top-three housing and public buildings construction companies in Russia. Revenues within the division are expected to exceed RUR 90 billion in 2012 as a result of the restructure.

By changing the management structure and the mode of interaction between HQ-Business Units, the restructure will see Basic Element's construction division emerge as a major Russian construction group with a diversified contract portfolio by 2017.

JSC  Glavsstroy will be responsible for strategic management of the division which will incorporate four main areas of business:

Housing and public buildings construction, production of building materials and structures, civic and industrial design planning (Corporation Glavmosstoy);

Development (Glavstroy-Development);

Infrastructure construction (Transstroy);

Cement production (BaselCement).

Future developments within the division could see cooperation with European development leaders such as Strabag, Hochtief and others. This cooperation will enable Basic Element to access cutting-edge technologies and further develop its business practices.

Basic Element Deputy CEO Andrey Elinson commented on the restructuring: "Changes to the management structure and mode of interaction between HQ-Business Units will  allow us to significantly increase Basic Element's construction division's efficiency, reduce general and administrative expenses, improve quality and increase transparency of its corporate governance, reaching synergy from businesses incorporation. It will enable us to better serve our clients and will boost market value growth. Our key goal is to build Russia's major multi-industry development group".