OJSC Granit-Kuznechnoye, a subsidiary of LSR Group (LSE: LSRG; MICEX, RTS: LSRG), has entered into a contract to acquire OOO Petrovsky Quarry, a crushed granite producer which holds license for Petrovskoye granite deposit located in the Vyborgsky District of the Leningrad Region. The total value of the transaction amounts to RUR 59 million. The acquisition is financed with the proceeds OJSC LSR Group received from the secondary public offering.

OOO Petrovsky Quarry holds a license for gneiss granite deposit with proven reserves of 25 million cub. m and owns two foreign-made aggregate processing plants which produce crushed granite. After the acquisition is completed, OJSC Granit-Kuznechnoye production facilities will include 8 plants and 5 deposits in the Vyborgsky and Priozyorsky Districts of the Leningrad Region.

The production capacity of the quarry amounts to 500 thousand cub. m per year. The quarry is provided with the necessary transport infrastructure – internal truck roads and access to railway.

Georgy Vedernikov, Managing Director of Building Materials, Aggregates and Construction Services Business Division of LSR Group, comments:
“Acquisition of OOO Petrovsky Quarry is part of our strategy to strengthen our positions in the crushed granite market in St. Petersburg and the Leningrad Region.
Petrovskoye is one of the best granite deposits in the Leningrad region. Its products can be used both for manufacture of building materials and all types of construction including infrastructure projects. This is important considering the significant number of infrastructure projects in St. Petersburg and Moscow, both planned and under way, as well as state interest to road construction. In addition, transport accessibility of the Vyborgsky District makes this quarry particularly attractive for development of our crushed granite production facilities. In future we are planning to increase our production capacity in this district”.