OREANDA-NEWS. PIK Group (“PIK” or “the Group”), one of Russia’s leading residential real estate developers, today announces that it is to merge two of its Moscow based industrial housing plants, DSK-2 and DSK-3, into one business unit.

By integrating the two plants, PIK will achieve important efficiencies. These include investing in the modernization of a single production site rather than two, bringing core competences closer together and reducing annual operating costs. Operational effectiveness will also be improved by centralizing management functions and creating one service and purchases center.

The integration project will be overseen by Vice President for Industry and Construction Konstantin Kuznetsov. The directors of DSK-2 and DSK-3, respectively Alexander Gribov and Dmitry Kapyrin, will continue as plant managers.

One of PIK’s key strategic competitive advantages is that it has ownership of its production facilities, ensuring that it can efficiently deliver on large scale affordable housing development projects. This integration project is a logical strategic step as both plants already work in close cooperation. Their total production capacity is 658,000 cu. m. of reinforced concrete per year, equivalent to 820,000 sq. m of housing. Within the framework of the project PIK plans to increase capacity to 850,000 cu. m. reinforced concrete per year, or 1 mln sq. m of housing.

The project is expected to take 1.5 years to complete and will deliver cost savings of 1.5 bln rubles per year. The project will also free up land for the Group to allocate for new development projects.