Tensar to build £12m Russian plant

SOIL reinforcement and mechanical ground stabilisation group Tensar International, which has its European HQ in Blackburn, is investing £12m in a manufacturing plant in Russia.

Tensar International is the majority shareholder in the joint venture with Russian partner Grand Massar for the new plant in the Peterhof area of Saint Petersburg,

Bob Vevoda, chief operating officer and president of Tensar International, said: “Our sales into Russia have expanded over recent years. We are seeing growth in demand for our products in transportation projects, utilities and the energy sector.

“Forecasts indicate that strong infrastructure growth will continue for the next decade and beyond making it clear to us that a plant in Russia was a necessity.

 “On top of that, the establishment of the Customs Union scrapping interstate tariffs and the likely expansion of the Union beyond Russia, Belarus and Kazakhstan, further increased the attraction of a manufacturing facility located in the region.”

The new plant is set for operation by January 2014. It will produce Tensar’s TriAx geogrid range, used to stabilise road construction over soft soils and to optimize pavement design for roads, ports and airfields.

David Cashman, Tensar’s business manager for Russia said: “Right now our products are being installed into the new Grand Prix track and infrastructure works for the Winter Olympic venues in Sochi. We need this new plant, located in Russia to meet demand there and our expanding business in Central Asia.”

The investment was welcomed by Business Secretary Vince Cable as he hosted a business summit with Russia’s First Deputy Prime Minister Igor Shuvalov.

Russia is now the UK’s 14th biggest export market and is one of the fastest growing, with British exports having grown 39% in 2011 to £4.78bn.

Dr Cable said: “Britain’s trade with Russia is rapidly expanding and the opportunities will only continue to grow as its economy opens up further to trade and investment.”