5th Nov 2013 13:30
PIK Group finalizes the legal merger of its production facilities
Moscow, November 5, 2013 - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, announces that it has finalized the legal merger of its two Moscow-based industrial housing plants, DSK-2 and DSK-3 and its transportation services unit PIK-Avtotrans under one production entity named JSC "PIK-Industries", which began its operations since November 2013.
The merger is expected to provide improved operational efficiency, concentration of expertise and cost optimization and will establish a platform for a gradual transition to new technologies in industrial housing production.
Mr. Konstantin Kuznetsov, PIK Group's Vice President for Industry and Construction has been appointed as the General Director of the combined entity and will oversee the further optimization and operational integration of processes at PIK-Industries.
The completion of the legal merger marks an important first milestone in the integration project approved by the Board of Directors in 2012 as part of a wider operational efficiency improvement program. This envisages the establishment of a single industrial housing production facility on the basis of DSK-2 plant with unified business processes, capacity management, quality control and investment process. The vacated territory of DSK-3 will be used for new residential development projects.
The new integrated production facility is estimated to have a capacity of 850,000 m3 of reinforced concrete annually which is about 1 mln sq. m of housing.
Enquiries:
PIK Group
Investor relations
Andrey Machanskis Tel: +7 495 505 97 33 ext. 1157 / 1315
Media
Natalia Ivanova Tel: +7 495 505 97 33 ext. 1010 /1014
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