NCC to build part of Philip Morris plant in Russia for SEK 175 million

NCC to build part of Philip Morris plant in Russia for SEK 175 million NCC Puolimatka International has entered into a contract with Philip Morris regarding the construction of a plant in St. Petersburg. The order is worth approximately SEK 175 million (FIM 115 million). The contract includes nine new buildings, including interiors, for the production and storage of cigarettes. The project has a gross volume of 665,000 cubic meters and a surface area of 86,000 square meters, of which the new buildings will account for 10,600 square meters. The construction period will be one year and nearly 400 employees will be engaged in the project. The project is only marginally affected by the uncertain financial situation in Russia. "The contract is denominated in USD and payments to the contractor will be secured through various technical contracts. The material will mainly be supplied from outside Russia, although Russian subcontractors will be used in the project. In view of the currently uncertain financial situation, we will endeavor to use subcontractors who are already known to us," explains Ari Suomalainen, who led negotiations from NCC´s viewpoint. "We will be building those parts of this major project that best match our expertise and our resources," says NCC Puolimatka´s project manager Ensio Koliseva, who will relocate from the office in Moscow to start up the project. "Since PLM´s canning plant will soon be ready, a portion of our organization, machinery and equipment will be transferred to St. Petersburg." The construction manager for the entire project is the British construction company Bovis. For further information, please contact Ari Suomalainen, NCC Puolimatka, tel +358-9-5075 449 .