LSRG.L Regulatory News (LSRG)

LSR Group cement enters the market

LSR Group (LSE: LSRG; MICEX, RTS: LSRG), operating one of the most advanced production facilities in the world, starts to sell cement to other construction companies (until now the cement was consumed internally).

LSR Group's plant uses the most efficient "dry" technology and manufactures bulk and packed cement: CEM I 42.5N, CEM I 32.5N and CEM II/A-SH 32.5N. The cement is certified in accordance with All-Union State Standard (GOST) 31108-2003 and meets highest ecological requirements. The product is delivered by trucks, railway or customer pickup. 

The plant, located in Slantsy (Leningrad region) and with annual capacity of 1.86 m tons, was launched at the end of 2010. In 2011 the plant completed commissioning operations, manufactured and tested clinker and cement, obtained all the necessary certificates.

The first batches were tested at LSR Group's reinforced concrete and ready-mix concrete business units. Based on the results that proved high quality of the cement, the company decided to launch it on the market under the trade mark - LSR-CEMENT. 

Quality control at LSR plant is a high-priority task - it has its own research laboratory with state-of-the-art equipment. The plant's integrated automated system and robotic equipment enable continuing control quality of the raw material, clinker and cement. 

The plant is one of the most environment-friendly and energy-efficient cement plants in the world: it uses alternative fuel and utilizes excess heat from the kiln providing more than 40% of the energy required for the production lines operation. Besides, the plant has strict emission limits which fully comply with the highest European environmental standards.

Yaroslav Stoupa, project director of LSR-Cement, comments:

"Our first consumers were subsidiaries of LSR Group - a company with almost 20-year expertise in construction and production of building materials and first-hand experience in the use of cement. We are confident with the quality of our cement because we manufacture it for ourselves as well: around 1 million tons of cement will cover internal demand of LSR Group, one of the Russia's largest cement consumers". 

Note to Editors:OJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Nowadays LSR Group is one of the largest real estate development and building materials producing companies in Russia. Its core business areas are production of building materials, real estate development and panel construction.LSR Group's main operations are located in St. Petersburg, Moscow, Yekaterinburg and Ukraine. As of 31 December 2010 (according to DTZ Russia), the net sellable area of the projects in LSR Group's real estate portfolio is equal to 8.4m m2 with the market value of RUB 104bn.In 2010, the sales revenues of LSR Group were RUB 49,950m (IFRS).LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX and RTS.

For more details please contact:LSR Group Press ServiceTel.: +7 812 314 10 44Fax: +7 812 458 83 72E-mail: press@lsrgroup.ruwww.lsrgroup.ru