December 02, 2008

Mr Abramovich to buys Russian cement industry assets

RIA Novosti reported that Mr Roman Abramovich Russian billionaire has bought a production license for a large cement rock deposit in the Urals and plans to build a USD 500 million plant.

Vedomosti said Millhouse Capital, which runs the businessman's assets, will build a plant in the Perm Territory to produce 2 million tonnes of cement annually by 2011. The paper said Mr Yury Utkin Deputy Head of the Perm Territory administration confirmed the plans, but did not give further details. Millhouse spokesman John Mann has refused to comment.

Experts quoted by the paper said the move was a logical one, as cement consumption in the Urals is set to exceed target levels this year. Mr Mikhail Bogush An Inteco Group executive said cement could be conveniently shipped to northwestern regions and Tatarstan with booming construction industries.

The paper said others are more skeptical about the deal, saying the existing cement producing plants have met the Perm Territory's demand, and a new one is being built in the area.