Russia’s Novoroscement plants sold

Russia’s leading export facilities and an important regional producer along Russia’s southern market, the Novoroscement complex has recently been sold by its Russian owners to another local group via the Moscow-based conglomerate Gazmetalloproekt.

Full ownership details are unclear but apparently the sale involves Alisher Usmanov, the Russian steel and iron ore magnate, who is said to be worth around US$3bn at the latest count, and his partners. The deal has actually been marked up to confidant Lev Kvetnoy a mid-40’s entrepreneur with his own personal worth recently put at over US$1bn.

The sale has been reported at close to US$950m with much of the proceeds going to majority owner Oleg Burlakov, now a long-term resident of Canada, who was earlier linked as

owner to the 2.5Mta Belgorad complex – but now within the Eurocement orbit. Earlier, Holcim’s Russian affiliates Alpha Cement are also said to have had a stake in the Novoroscement complex although this has never been fully confirmed and Alpha was probably squeezed out back in 2004/5.

The Novoroscement complex comprises three plants, all close to the neighbouring deepwater port of Novorossysk, with a combined capacity put at around 4.9Mta, sales last year close to 4Mta and some excellent long-term limestone deposits. The plant services the south federal district and especially the Krasdonar region where it is the monopoly supplier. Novoroscement reportedly achieved export sales in excess of 1Mt in 2006, selling into various European and African countries.