Veda denies halt to flat glass plant construction

Alexander Matt, a shareholder of Russia“s Veda-Obyedinyonnyye Kompanii (Veda-United Companies) told reporters on 10 March 2005 that the company does not plan to suspend building of the USD 190 millio…

Alexander Matt, a shareholder of Russia“s Veda-Obyedinyonnyye Kompanii (Veda-United Companies) told reporters on 10 March 2005 that the company does not plan to suspend building of the USD 190 million RoSteklo sheet glass factory in the Novgorod Region. Earlier in February 2005, regional Governor Mikhail Prusak said that building work on the plant had been halted due to the death of Veda“s Chairman Kirill Rogozin. Rogozin was responsible for construction-related negotiations with the government, Prusak said. Documents relating to the construction are currently being studied by the regional government, Matt said on 15 March 2005. Within five years, the company plans to make an initial public offering (IPO), he said, adding that preparations for the IPO would start in 2006. Construction of the factory began in November 2004. The first production line at the factory was expected to be launched in July-September 2006 and the second line in 2007. The company aims to sell 16.5 million square meters of sheet glass per year from the plant. Veda-Obyedinyonnyye Kompanii has interests in glass, soft drinks, and liquor production, as well as two distribution companies in Moscow and St. Petersburg and various investments in real estate and construction. The company is managed by OOO Veda Sistema (Veda System Ltd.).