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Eurocement and Sberbank of Russia sign cooperation agreement

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World Cement,

Eurocement and Sberbank of Russia have signed a cooperation agreement to secure funding for the construction of new dry process cement manufacturing plants in Russia. The agreement was signed by Herman Gref, CEO and Chairman of the Board at Sberbank, and Filaret Galchev, Chairman of the Board of Directors at Eurocement, during the XVIII St Petersburg International Economic Forum.

The purpose of the agreement is to secure funding for new cement manufacturing plants being built in Russia, all of which will operate using the energy-efficient and environmentally clean dry process. The implementation of this programme will enable the company to increase the proportion of cement that it manufactures using the dry method to 100% by 2018. The shift towards this technology will lead to a doubling of energy efficiency in manufacturing, an increase in workforce productivity of 3.5 times and a reduction in environmental impact by a factor of 2.5 times (compared to standard industry norms). By the time the programme reaches its conclusion, in 2018, 63% of all the cement manufactured in the Russian Federation will be produced using the dry process.

The agreement also stipulates that the two parties will cooperate on a whole range of issues, from settlement and cash services to the provision of investment and banking products (via Sberbank CIB) and other financial services, both for Eurocement itself and for its affiliates and dependent companies.

Herman Gref commented: “Sberbank and Eurocement Group enjoy a complete mutual understanding, not just as partners but also as organisations which preach the values of being leaders in their fields, something that cannot be achieved without constantly striving to achieve perfection in the level of service provided. By expressing our intention to finance the company’s investment programme, we are once again emphasising one of our key priorities: to provide comprehensive support for the development of Russia’s industrial sector.”

Filaret Galchev added: “Eurocement Group and Sberbank of Russia have successfully completed global investment projects in the past, such as the construction of a new high-tech cement plant in the Voronezh Region, which is unique in the CIS and which was launched in late 2012. The signing of the agreement with Sberbank will serve as a guarantee that the Holding company's investment programme will receive sufficient funding until 2018 and that the transition to the active phase of the construction of new cement manufacturing facilities will be made. The implementation of this project will give a significant boost to growth in Russia’s construction sector as a whole, by providing high quality cement for infrastructural and residential projects in the country.”

Agreement signed with Russia's Ministry of Economic Development

Eurocement additionally signed a liason agreement on issues related to external economic activity with the Ministry of Economic Development of the Russian Federation during the St Petersburg International Economic Forum. The document was signed by Alexey Ulyukaev, the Minister of Economic Development of the Russian Federation, and Mikhail Skorokhod, the President of Eurocement Group. The purpose of the agreement is to secure favourable conditions for the holding company's economic activity overseas.

The agreement stipulates that the parties will cooperate in order to promote the Holding company's interests among foreign entities involved in external economic activity, as it seeks to implement a building project involving the construction of modern dry process cement manufacturing plants in Russia.

Mikhail Skorokhod noted: "The implementation of the programme to construct new cement manufacturing facilities in the Russian Federation will require strategic cooperation on a wide range of issues with foreign partners who have mastered the best global practices. The agreement that we have signed will enable Russia's Ministry of Economic Development and Eurocement Group to join forces in order to develop Russia's building materials industry."

Adapted from press release by Rosalie Starling

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