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	Transportation Infrastructure
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Construction Sector

/ Structure / Construction Sector

«Today, our key goal is to raise the efficiency level of each employee, each working crew, each plant and the company as a whole. Increased productivity, reduced waste and lean production will allow us to remain competitive and as a result, to retain and improve our market position.»

Alexey Barantsev
Head of Sector

Main business lines of Basic Element's Construction Sector include construction of transportation infrastructure facilities, commercial and residential real estate, as well as production of construction materials and real estate development. The largest companies comprising the construction sector are Glavstroy, Transstroy and Altius Development.

The federal government, regional authorities and private business will invest more than 30 trln rubles in transportation infrastructure in 2010-2015.

Key Facts

30,000 employees
25% stake in Strabag
100% stake in Fahrni
Beginning of cement production in Russia, Kazakhstan cement production increased 3.5 times

Key Results 2007

Agreement with the City of St. Petersburg for investment of 20 USD bn through 2015
Construction contracts for Yuntolovo and Northern Valley projects
Participation in PPP tenders
Preparation for Sochi 2014 projects implementation
Joint education and training programs with Strabag and Hochtief

2007 Results

2006 Results

Our priorities

Personnel Development

Increasingly, projects undertaken by the Construction Sector depend on the use of modern technology and engineering design. These projects often require specialized knowledge and skills. In this sector an entire program of professional development has been created, involving Basic Element's international partners.

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Environmental protection

This sector of the company focuses on principles of conservation and the improvement of the country's ecological situation.

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New technologies

New processes developed by Russian and international specialists - some of which are unique, and others broadly used - will be employed by the Basic Element's companies in their construction projects in the nearest future.

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Construction

Glavstroy Corporation specialises in building integrated housing projects and the production of construction materials. Each year, Glavstroy constructs several hundred thousand square metres of buildings designed for various purposes.

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Transportation Infrastructure

Transstroy is one of Russia's largest holdings which build major transportation infrastructure facilities, including roads, bridges and tunnels. In the last decade, the holding's companies have constructed more than 100 such facilities.

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Development

Altius Development's work focuses on the construction of large-size, multi-functional centers, as well as the re-development of industrial areas and and management of real estate assets.

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Construction Materials Production

The company was established in 2006. It produces cement, crushed stone, lime, bentonite mud powder. Basel Cement annually produces 1,4 mln tons of cement and 540,000 tons of lime. The company plans to substantially increase production levels of these materials and diversify into other construction materials.

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Sector News

12.09.2009

Basic Element and Island Global Yachting sign memorandum of intent to operate world-leading marina in Sochi

Basic Element, Russia's leading diversified investment company, has today signed a memorandum of intent with Island Global Yachting (IGY) to manage a world-leading marina complex in Sochi, paving the way for significant employment and investment opportunities in the region. IGY is also considering an option to become a co-investor in construction of the complex.

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