VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN

Visits within Russia

4 june, 2009 14:18

Pikalyovo Cement CJSC

Historically, the Pikalyovo Cement plant can be traced back to 1930, when limestone and clay deposits were discovered near the Pikalyovo station of the Murmansk Railway. In 1935, a manufacturing enterprise and an industrial community were founded, with construction finalised in the summer of 1941. Germany's invasion of the USSR prevented the immediate launch of the plant. Restoration work began in 1944. In September 1949, operations of the first raw mill began, producing the first batch of cement clinker in October. In 1949, the first phase of a facility to produce 90,000 tons of cement a year was commissioned. In 1950, another production line was opened, and a third in 1951. 

After an alumina refinery was launched at Pikalyovo in 1959, Pikalyovo Cement switched to a new raw materials formula, replacing cement clay with alumina refinery waste, thus increasing production output. The factory's modernisation took a few years, with three new production lines installed between 1961 and 1963.

In 2003, Pikalyovo Cement became a separate legal entity, being separated from Glinozyom, which had previously incorporated the alumina refinery, cement and chemical production.
In 2004, the plant was owned by Britain's Stonehenge Holding Lt. for a short period.

The enterprise was re-sold to CJSC Inteco later that year.

In 2005, Pikalyovo Cement joined the Eurocement Group. The plant's cement was used in most of St Petersburg's strategic construction sites, including the metro, the nuclear power plant, the belt motorway, a dam, harbor berths, etc.

In April and May 2006, the SUAL company and Eurocement Group signed two agreements, on conditions suggested by SUAL, for the delivery of primary commodity to the Pikalyovo Cement for the production of clinker - 120,000 tons of nepheline slime and 100,000 tons of limestone per month, respectively. Each of the agreements has a term of three years allowing for annual sale price adjustment.

In 2007, the output of Pikalyovo Cement exceeded 2 million tons.

In December 2007, after the purchase of the PGZ-SUAL branch, the main raw material supplier for the Pikalyovo Cement plant, RusAl top management decided to shift from alumina refining to cement production, which caused a shortage in primary raw material deliveries to Pikalyovo Cement.

* Since January 1, 2008, limestone supplies to Pikalyovo Cement have been cut in half contrary to the agreement, forcing the factory to buy limestone from Lipetsk.
* Since April 1, nepheline slime deliveries have been cut by 50%, and ceased completely on August 1.

This forced the plant to halt operations of the raw kiln and kiln burning shops on August 2, 2008, laying off over 200 employees.

To maintain grinding house production and distribution, albeit at a reduced rate, Eurocement Group management resorted to emergency deliveries of 50,000 to 70,000 tons of clinker a month from other plants belonging to the company.

Management was still forced to lay off some of the factory personnel.

To improve the social situation in Pikalyovo, Eurocement Group Holding decided to resume cement production at Pikalyovo Cement using foreign clinker in April 2009.

New production will create up to 200 additional jobs and engage freight carriers and energy suppliers, as well as ensure additional tax receipts to the budgets of different levels.

In May 2009, Eurocement Group signed an agreement on social-economic cooperation with the authorities of the Leningrad Region, Boxitogorsk municipal district and the town of Pikalyovo for 2009.

The document requires regional authorities to facilitate the reconstruction and development of a raw material base, engineering and transport infrastructure for Pikalyovo Cement and to provide management support to the company.

In its turn, the Holding undertakes to open a Eurocement Group wholesale outlet in the Leningrad Region.