MOSCOW, August 10 (Itar-Tass) —— Rosenergomash, Russia’ s leading electrical engineering manufacturer, confirmed plans to sell IskitimCement shares.
“When buying the IskitimCement shares at an auction of the Federal State Property Management Agency we certainly had made plans for the future development of our business,” Rosenergomash President Vladimir Palikhat said on Wednesday, August 10.
“As a maximum, we contemplated an ambitious plan of consolidating several cement enterprises in hope that a holding company to be created in their place would become a worthy competitor for Eurocement Group, the Russian market leader,” he said.
At the same time, detailed economic analysis of these enterprises’ condition suggested that the business was overestimated.
“Given the current pressure from borrowing, a high degree of equipment wear and tear and obsolete energy consuming technologies, investments needed for creating a cement holding company would have an economically unjustified recoupment period,” Palikhata said.
“Since we considered it unadvisable to proceed with the maximum programme and having received an offer for the purchase of our shares in the enterprise, we accepted it. This will allow us to concentrate our money and effort on other promising projects,” he said.