Sochi construction boost

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A new light steel plant that will open in Sochi in early 2009 is expected to capitalise on construction opportunities expected from the 2014 Winter Olympics.

Genesis Worldwide, a specialist in using light gauge steel aimed at the residential, commercial and institutional building markets, has struck a deal with Sochi–based construction company Metallist to build a new plant that will produce light steel panelled structures using the Genesis Solution. Both companies are keen to capitalise on the forthcoming Sochi 2014 Winter Olympic Games. Under the terms of the agreement, Genesis will earn initial revenue of approximately $3. 3m from licensing its technology to Metallist, as well as from the sale of industrial equipment and hardware and various training and consulting services required for the commissioning of the plant which is expected to open in early 2009. Genesis will also earn a minimum of $3m in royalty fees over the next five years. The term of the agreement is for a five–year period and will automatically renew for an additional 10 years. Metallist director, Alexander Kurganskiy, applauded the deal, stressing that it comes at an opportune time for his company. " With the 2014 Olympics around the corner, we will be competing for major construction projects, " he said. " The expertise Genesis brings in terms of light gauge steel technology means we can build and expand our market share by offering customers an efficient and economic alternative to wood. We can now compete in the resort market and also build mid–rise condominiums and apartment buildings which will enable us to compete much more effectively in the local commercial market. " " This growth trend could provide a significant business opportunity for Genesis going forward, " added Mag Mostafa, Genesis' vice president of business development. " As the 2014 Winter Olympics will be held in Sochi, the demand for rapid, high–quality and environmentally sound construction is increasing in the region. " Construction was the fastest growing sector of the Russian economy in 2007.

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