OREANDA-NEWS. December 19, 2013. LSR Group (LSE: LSRG; MICEX-RTS: LSRG) increases its brick production capacity - the company swapping assets to acquire one of the leading brick production facilities in the North-West region – Ryabovsky brick plant.

LSR Group acquires 100% of Gazstroy, owner of Ryabovsky brick plant, in exchange for office centers in St. Petersburg. This complies with the company’s strategy to concentrate operations in the following key business areas: production of building materials, construction and residential real estate development.
 
The annual production capacity of the new plant is up to 150 million bricks. Fully automated manufacturing equipment supplied by Handle and Lingl allows to produce various types of bricks – from construction and solid bricks to large-format porous blocks and facing bricks of different colors.
 
As a result our combined brick production capacity in St. Petersburg, the Leningrad and Moscow regions increases to approximately 450 million bricks per year.

As a part of the deal LSR Group also obtains a license for clay deposit “Krasny Latysh”, which is located close to the plant, with proven reserves enough for about 30 years of operations.
 
Aleksandr Vakhmistrov, CEO and Chairman of the Executive Committee of LSR Group, comments:
“LSR Group discontinues its commercial real estate business. We plan to focus on the production of building materials, construction and residential real estate development. This deal will significantly strengthen our position in the market and also increase effectiveness of our brick plants. Each production facility will concentrate on manufacturing only particular types of brick thus reducing production and sales costs”.