Austrian building company Strabag has reached an agreement to establish a 50:50 joint venture with BaselCement, a company that forms part of the construction and materials division of the Russian investment holding Basic Element.
The joint venture will focus on the acquisition, construction and operation of cement plants. Strabag and Basic Element each have agreed to contribute their worldwide cement assets to the joint venture. Accordingly, Strabag will contribute the cement facility it is in the process of constructing in Hungary, and Basic Element will contribute various cement factories in Russia and Kazakhstan. Any difference in the value of the two parties' contributions will be settled in cash.
In April 2007, Rasperia, a company, which like Basic Element, is controlled by Oleg Deripaska, a Russian entrepreneur, purchased a 30% stake of Strabag. Since then Basic Element and Strabag have teamed up for participation in several tenders, including the construction of Orlovsky tunnel and Western-Highspeed Diameter both in St Petersburg, the highway between Moskau and St.Petersburg, the highway between Moskau and Krasnodar and a PPP road construction in Montenegro. (nestor.minsk.by)