PIK Group announced that it has finalized the legal merger of its two Moscow-based industrial housing plants, DSK-2 and DSK-3 and its transportation services unit PIK-Avtotrans under one production entity named JSC PIK-Industries, which began its operations since November 2013. The merger is expected to provide improved operational efficiency, concentration of expertise and cost optimization and will establish a platform for a gradual transition to new technologies in industrial housing production. The completion of the legal merger marks an important in the integration project approved by the board of directors in 2012 as part of a wider operational efficiency improvement program. This envisages the establishment of a single industrial housing production facility on the basis of DSK-2 plant with unified business processes, capacity management, quality control and investment process. The vacated territory of DSK-3 will be used for new residential development projects. The new integrated production facility is estimated to have a capacity of 850,000 m3 of reinforced concrete annually which is about 1 million sq. m of housing.

The company announced that Mr. Konstantin Kuznetsov, the company's Vice President for Industry and Construction has been appointed as the General Director of the combined entity and will oversee the further optimization and operational integration of processes at PIK-Industries.