OREANDA-NEWS.Basic Element, one of Russia's largest diversified industrial groups, announces restructuring of its construction business managing system. Organizational developments are aimed at boosting the sector's effectiveness, competitiveness and profitability, and will also help to expand the range of services.

Two holding companies, Glavmosstroy and Transstroy, are created on the basis of Glavstroy holding, which manages Basic Element's construction business. Glavmosstroy will focus on civil construction, while Transstroy will be responsible for infrastructure construction projects.

Evgeny Fedorov, who has earlier headed EuroSibEnergo and Irkutskenergo, was appointed Glavmosstroy CEO. Igor Pankin was named CEO of Transstroy holding company. Prior to that, Pankin worked at Project Engineering Company Transstroy. Siegfried Wolf was appointed the Chairman of both holdings' Board of Directors.

Glavmosstroy holding company will be responsible for a complex development of residential construction, ranging from building materials' production to real estate development projects. Thereby Glavstroy-Development and BaselCement will be added to new Glavmosstroy's structure. Glavmosstroy business priorities include ramping up the volumes of panel and monolithic housebuilding in Central Russia, designing new economy- and premium-class residential real estate, further development of expertise in health service centers construction as well as raising effectiveness of own production capacities. On top of that, Glavmosstroy will also keep its eye on retaining leadership positions in social infrastructure construction in Moscow region and carrying out construction projects in the areas that had been previously occupied by industrial plants.

Yury Molotkov was named the Chairman of the Board of Directors of the OJSC “Holding company Glavmosstroy”. He started his career in construction industry back in 1977, and occupied various managerial positions in Glavmosstroy. Molotkov holds awards as “Moscow's honored builder,” “Russia's honored builder” and “Russia's distinguished builder”.

Transstroy holding company will become a managing centre of infrastructure construction, and will unite a number of departments within the former Glavstroy. The new holding structure will develop expertise in building a wide range of infrastructure facilities throughout Russia. Among the key areas there will be highway and railroad construction, raising sports facilities as well as tunnel and bridge construction, airport and airfield construction, building of hydraulic engineering facilities and various industrial projects. The company prioritizes private public partnership projects.

Kirill Polyakov was assigned to oversee Transstroy's financial and administrative unit, Stephan Zoechling is responsible for the company's production unit.

While commenting on the recent changes, the Chairman of two newly created holdings, Siegfried Wolf, said: “We consider construction sector as one of Basic Element's key businesses that has a great potential for growth and capable of implementing large-scale construction and infrastructure projects that Russia put stake on. The most vivid example of the construction sector's productivity is building Basic Element's Olympic projects. The new structure of managing construction projects will allow to respond to clients and market's requirements in a more timely manner. I believe that restructuring of Basic Element's construction business and focusing on priorities for development and as well as market's needs, will strengthen our role as one of the most reliable Russian construction companies, which can successfully realize projects of any complexity.”