08 октября 2013
SU-155 To Invest In Factory
The Moscow Times

Property  developer SU-155 plans to invest 10 billion rubles ($310 million) in the  construction of a factory complex that will satisfy its own extensive demand for  building materials, Kommersant reported Monday.

The company  intends to erect an elevator factory with a production capacity of 12 thousands  units a year, another factory producing 300 tons of reinforced bars a year, and  a steelworks with an output of 20,400 tons a year.

A railroad  line from the Serpukhov Station, 99 kilometers south of Moscow, to the nearby  construction grounds should be operational by the end of the  year.

The  developer already owns isolated factories in Domodedovo, Shcherbinka, Tula and  Ivanovo.

SU-155 is  projecting 25 billion rubles ($780 million) a year in revenue from the new  complex, a substantial increase, considering the fact that its total revenue  last year was 34.3 billion rubles.

Producing  its own materials could lower SU-155's construction costs by between 20 and 40  percent, experts said.

The  facilities will also carry certain risks, however. If their workload should  decrease due to logistical problems, the company could face «serious  expenditures,» as it would still be obliged to pay its enlarged workforce, said  Maria Litinetsaya, general director  of Metrium Group.

The PIK,  LSR, and DSK-1 construction groups have also turned to independent manufacturing  to cut down construction costs.

Founded by  billionaire Mikhail Balakin in 1993, SU-155 group operates in 50 Russian cities  constructing up to 1.5 million square meters of real estate a  year.

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