Factor decided to build pipelines

The Novosibirsk group of companies "Factor" in partnership with the company "Sibtruboprovodstroy" intends to become a major player in the Russian pipeline construction market. The partners expect to attract up to $100 million in investments to their project, and their business development consultant is the international consulting company Monitor Group. This became known yesterday during the seminar "Novosibirsk Business in the World Economy - Challenges and Opportunities" held in Novosibirsk.

Monitor Group is an international consulting and investment company. According to its own assessment, it is one of the six leading consulting companies in the world. Through his banking group, he works in the market of private investment, venture capital, fund management. Manages assets worth $1.5 billion, controls industrial enterprises with a profit of more than $2.5 billion. The company's representative office has been operating in Russia since 1996.

Founded in the early 1990s, the Factor group of companies is most visible in the food business. Has stakes in "Novosibirskkhleboprodukt", "Novosibirsk Pasta Factory". In 2003, Factor got rid of a stake in Novosibirsk Fat Plant by selling its stake to the Saratov group of companies Buket.

Yesterday Novosibirsk hosted a seminar “Novosibirsk Business in the Global Economy – Challenges and Opportunities”. It was organized by the Monitor Group and the administration of the Novosibirsk Region. The seminar was attended by heads of two dozen Novosibirsk companies and banks. Monitor Group Vice President Gerhard Prinsloo told them about the company's various activities, including that it provides company valuation services and is looking for potential investors. According to him, the company is considering the possibility of creating a private equity fund in Russia. According to the Vice-President of Monitor Group, Managing Director of Monitor-Russia Alexander Tolkachev, about 20 Russian companies have already used the company's services, and in particular Energoprom and Factor.

According to Igor Kuznetsov, Chairman of the Board of Directors of Factor, his group of companies has been using the services of Monitor Group for more than a year. With the help of this company, Factor expects to "transfer its business from the local plane", to implement a number of federal and international projects.

According to him, "Factor" in partnership with "Sibtruboprovodstroy" plans to build a holding company that will operate on the market for the construction and reconstruction of the pipeline network, where it will be installed

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in Russia, the CIS and far abroad, Igor Kuznetsov says that the partners created the management company Sibtruboprovodstroy, which has become one of Gazprom's largest contractors in the pipe repair market. According to Alexander Povetyev, General Director of OAO Sibtruboprovodstroy, in 2004 the company's order volume increased by 2.4 times compared to 2003, and in 2005 it is planned to increase it by another 1.5 times. He considers the market for construction and repair of pipelines to be rapidly growing: "In Eastern Siberia and the countries of the Pacific region, 10,000 km of pipelines need to be built." Igor Kuznetsov estimates the volume of investments necessary for the development of the company to be “closer to $100 million”. According to him, the project will be financed by own and borrowed funds, as well as using the financial capabilities of such customers as Gazprom. He does not disclose information about what share of the pipeline construction and repair market the company plans to take.