SU-155 Group () was a Russian

vertically integrated In microeconomics, management and international political economy, vertical integration, also referred to as vertical consolidation, is an arrangement in which the supply chain of a company is integrated and owned by that company. Usually each ...

group of companies A corporate group, company group or business group, also formally known as a group of companies, is a collection of parent and subsidiary corporations that function as a single economic entity through a common source of control. These types of gr ...

which had been a leader in the Russian building construction industry. Besides

building construction Construction are processes involved in delivering buildings, infrastructure, industrial facilities, and associated activities through to the end of their life. It typically starts with planning, financing, and design that continues until the a ...

and

real estate development Real estate development, or property development, is a business process, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw Real Estate, land and the sale of developed land or parce ...

, the group conducted activities in construction and non-metallic materials manufacturing,

mechanical engineering Mechanical engineering is the study of physical machines and mechanism (engineering), mechanisms that may involve force and movement. It is an engineering branch that combines engineering physics and engineering mathematics, mathematics principl ...

, and investing in land, engineering and public

infrastructure Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and pri ...

. The group headquarters was located in

Moscow Moscow is the Capital city, capital and List of cities and towns in Russia by population, largest city of Russia, standing on the Moskva (river), Moskva River in Central Russia. It has a population estimated at over 13 million residents with ...

. As of 2013, the SU-155 group operates in 54 different Russian cities. More than 100 companies are part of the group: construction material businesses, contractor/construction organizations, non-metallic natural resource procurement enterprises, mechanical engineering outfits, and service companies. The legal name of the group's head company is Closed

Joint-Stock Company A joint-stock company (JSC) is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareho ...

"SU-155" (). In 2015, the company was declared bankrupt.

History

The group traces its history to 1954, when the entity "Stroymontazhtrest Number 3", later renamed to "Construction Management Number 155", was created in the Glavmosstroy system. In 1993 the entity was transformed into a closed

joint-stock company A joint-stock company (JSC) is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareho ...

. From the beginning of the 2000s, the Group systematically widened its presence in the country's regions, purchasing or creating building construction companies and manufacturing enterprises.

Ownership and management

The primary owner and chairman of the board (as of 2014) is Mikhail Balakin, who in 2014 was listed as number 52 on the

Forbes ''Forbes'' () is an American business magazine founded by B. C. Forbes in 1917. It has been owned by the Hong Kong–based investment group Integrated Whale Media Investments since 2014. Its chairman and editor-in-chief is Steve Forbes. The co ...

list of 200 richest Russian businessmen and listed as number 866 on the

list of the world's billionaires with assets worth $1.9 billion. The CEO of LLC East-Siberian Construction Company (part of SU-155 Group) is the former

mayor In many countries, a mayor is the highest-ranking official in a Municipal corporation, municipal government such as that of a city or a town. Worldwide, there is a wide variance in local laws and customs regarding the powers and responsibilitie ...

Yakutsk Yakutsk ( ) is the capital and largest city of Sakha, Russia, located about south of the Arctic Circle. Fueled by the mining industry, Yakutsk has become one of Russia's most rapidly growing regional cities, with a population of 355,443 at the ...

(1998-2007) and former

governor A governor is an politician, administrative leader and head of a polity or Region#Political regions, political region, in some cases, such as governor-general, governors-general, as the head of a state's official representative. Depending on the ...

Arkhangelsk region Arkhangelsk Oblast ( rus, Архангельская область, p=ɐrˈxanɡʲɪlʲskəjə ˈobɫəsʲtʲ) is a federal subject of Russia (an oblast). It includes the Arctic archipelagos of Franz Josef Land and Novaya Zemlya, as well as t ...

(2008-2012),

Ilya Mikhalchuk Ilya Filippovich Mikhalchuk (; born 2 January 1957) is a former Russian politician, Head of the East-Siberian Construction Company representing the interests of the SU-155 Group of companies in Siberia. From 2008 to 2012, he was Governor of Arkh ...

Structure

SU-155 Group has grown over 20 years from a small construction company into a

group of manufacturing and production companies with a closed production cycle: its structure contains assets allowing for business integration at all stages of the supply chain. Overall, SU-155 Group declares the presence in its structure of: * 18 real estate developer companies * 22 contractor companies * 5 mechanical engineering factories * 30 construction materials enterprises * 4 architectural design companies * 2 estate agent companies * 2 transportation companies * 1 finance company In

Serpukhov Serpukhov ( rus, Серпухов, p=ˈsʲerpʊxəf) is a types of inhabited localities in Russia, city in Moscow Oblast, Russia, located at the confluence of the Oka River, Oka and the Nara (Oka), Nara Rivers, 99 kilometers (62 miles) south fro ...

(

Moscow Oblast Moscow Oblast (, , informally known as , ) is a federal subjects of Russia, federal subject of Russia (an oblast). With a population of 8,524,665 (Russian Census (2021), 2021 Census) living in an area of , it is one of the most densely populate ...

), SU-155 is building a manufacturing cluster worth more than 10 billion roubles (295 million US$ or 215 million €), which will include a Serpukhov

Elevator An elevator (American English) or lift (Commonwealth English) is a machine that vertically transports people or freight between levels. They are typically powered by electric motors that drive traction cables and counterweight systems suc ...

Manufacturing Plant launched in 2013, along with a fittings manufacturing factory and a steel structure production enterprise. It is estimated that the turnover of all the new cluster's enterprises combined will reach 25 billion roubles (740 million US$ or 540 million €) per year. In 2013–2014, the Group announced and began the construction of new manufacturing enterprises in

Penza Penza (, ) is the largest types of inhabited localities in Russia, city and administrative center of Penza Oblast, Russia. It is located on the Sura (river), Sura River, southeast of Moscow. As of the 2010 Russian census, 2010 Census, Penza had ...

Iskitim Iskitim () is a town in Novosibirsk Oblast, Russia, located on the Berd River. Population: History In 1717, four villages were documented on the site of the future city: Koinovo, Shipunovo, Chernodyrovo and Vylkovo. In 1929, deposits of lime ...

(

Novosibirsk Oblast Novosibirsk Oblast () is a federal subjects of Russia, federal subject of Russia (an oblast) located in southwestern Siberia. Its administrative center, administrative and economic center is the types of inhabited localities in Russia, city of N ...

) and

Volgograd Volgograd,. formerly Tsaritsyn. (1589–1925) and Stalingrad. (1925–1961), is the largest city and the administrative centre of Volgograd Oblast, Russia. The city lies on the western bank of the Volga, covering an area of , with a population ...

. Previously, Mikhail Balakin (majority shareholder of CJSC SU-155) owned a 48.15% stake in the NS Bank (Independent Construction Bank), but in April 2013, he sold his shares in the bank to the management. In April 2014, SU-155 withdrew from all companies providing housing and utility services previously included in the Group, selling shares to those companies' managements.

Operations

SU-155 operates in the Central (

and the

Bryansk Bryansk (, ) is a types of inhabited localities in Russia, city and the administrative center of Bryansk Oblast, Russia, situated on the Desna (river), Desna River, southwest of Moscow. It has a population of 379,152 at the 2021 census. Bryans ...

Vladimir Vladimir (, , pre-1918 orthography: ) is a masculine given name of Slavic origin, widespread throughout all Slavic nations in different forms and spellings. The earliest record of a person with the name is Vladimir of Bulgaria (). Etymology ...

Ivanovo Ivanovo (, ) is a types of inhabited localities in Russia, city in Russia and the administrative center and largest city of Ivanovo Oblast, located northeast of Moscow and approximately from Yaroslavl, Vladimir, Russia, Vladimir and Kostroma. ...

Kaluga Kaluga (, ) is a types of inhabited localities in Russia, city and the administrative center of Kaluga Oblast, Russia. It stands on the Oka River southwest of Moscow. Its population was 337,058 at the 2021 census. Kaluga's most famous residen ...

Kostroma Kostroma (, ) is a historic city and the administrative center of Kostroma Oblast, Russia. A part of the Golden Ring of Russian cities, it is located at the confluence of the rivers Volga and Kostroma. In the 2021 census, the population is 267, ...

Ryazan Ryazan (, ; also Riazan) is the largest types of inhabited localities in Russia, city and administrative center of Ryazan Oblast, Russia. The city is located on the banks of the Oka River in Central Russia, southeast of Moscow. As of the 2010 C ...

Tver Tver (, ) is a types of inhabited localities in Russia, city and the administrative centre of Tver Oblast, Russia. It is situated at the confluence of the Volga and Tvertsa rivers. Tver is located northwest of Moscow. Population: The city is ...

, Tula, and

Yaroslavl Yaroslavl (; , ) is a city and the administrative center of Yaroslavl Oblast, Russia, located northeast of Moscow. The historic part of the city is a World Heritage Site, and is located at the confluence of the Volga and the Kotorosl rivers. ...

Regions), Northwestern (

St. Petersburg Saint Petersburg, formerly known as Petrograd and later Leningrad, is the second-largest city in Russia after Moscow. It is situated on the River Neva, at the head of the Gulf of Finland on the Baltic Sea. The city had a population of 5,601, ...

and the

Kaliningrad Kaliningrad,. known as Königsberg; ; . until 1946, is the largest city and administrative centre of Kaliningrad Oblast, an Enclave and exclave, exclave of Russia between Lithuania and Poland ( west of the bulk of Russia), located on the Prego ...

and

Leningrad Saint Petersburg, formerly known as Petrograd and later Leningrad, is the List of cities and towns in Russia by population, second-largest city in Russia after Moscow. It is situated on the Neva, River Neva, at the head of the Gulf of Finland ...

Regions),

Volga The Volga (, ) is the longest river in Europe and the longest endorheic basin river in the world. Situated in Russia, it flows through Central Russia to Southern Russia and into the Caspian Sea. The Volga has a length of , and a catchment ...

(

Nizhny Novgorod Nizhny Novgorod ( ; rus, links=no, Нижний Новгород, a=Ru-Nizhny Novgorod.ogg, p=ˈnʲiʐnʲɪj ˈnovɡərət, t=Lower Newtown; colloquially shortened to Nizhny) is a city and the administrative centre of Nizhny Novgorod Oblast an ...

and

Regions), Southern (

Region) and

Siberian Siberia ( ; , ) is an extensive geographical region comprising all of North Asia, from the Ural Mountains in the west to the Pacific Ocean in the east. It has formed a part of the sovereign territory of Russia and its predecessor states si ...

(

Omsk Omsk (; , ) is the administrative center and largest types of inhabited localities in Russia, city of Omsk Oblast, Russia. It is situated in southwestern Siberia and has a population of over one million. Omsk is the third List of cities and tow ...

and

Novosibirsk Novosibirsk is the largest city and administrative centre of Novosibirsk Oblast and the Siberian Federal District in Russia. As of the 2021 Russian census, 2021 census, it had a population of 1,633,595, making it the most populous city in Siber ...

Regions and

Krasnoyarsk Krai Krasnoyarsk Krai (, ) is a federal subjects of Russia, federal subject (a krai) of Russia located in Siberia. Its administrative center is the types of inhabited localities in Russia, city of Krasnoyarsk, the second-largest city in Siberia after ...

) Federal Districts - 20 regions in total as of 2014. SU-155 Group's turnover as of 2013 amounted to 114.2 billion roublesMaria Dranishnikova, Anton Filatov, Nadezhda Zaitseva
SU-155 makes 74.8 bn rubles from housing sales in 2013
"

Vedomosti ( rus, Ведомости, p=ˈvʲedəməsʲtʲɪ, ) is a Russian-language business daily newspaper published in Moscow. History was founded in 1999 as a joint venture between Dow Jones, who publishes ''The Wall Street Journal''; Pearson, ...

", 26.02.2014. (in Russian) (3.36 billion US$ or 2.46 billion €) (in 2012 - 84.3 billion roubles, and in 2011 - 82.7 billion roubles), including housing sales amounting to 74.8 billion roubles (2.2 billion US$ or 1.61 billion €). In 2013, the Group built 1.65 million sq. m. of property (in 2012 - 1.43 million sq. m.,Plus 10% GC "SU-155"
(in Russian) and in 2011 - 1.3 million sq. m.SU-155 became the first area built in 2012 estate
(in Russian)), including more than 513 thousand sq. m. built outside of Moscow and the Moscow Region, which amounts to almost 31% of the overall amount of construction (in 2012, almost 640 thousand sq. metres was built in the regions, 45% of the overall amount of construction; in 2011 - 500 thousand sq. m., corresponding to 37%). In 2013, the Group beat the industry (and its own) record of 1.51 million sq. m. of housing built by the company in 2009. The company is the leading property real estate developer in Russia by revenue from property sales in 2013 (by

): *SU-155 Group - 74.8 billion roubles (2.2 billion US$ or 1.61 billion €) *

PIK Group PIK, officially Public Joint Stock Company «PIK-specialized homebuilder» (), is a leading european homebuilder and construction company headquartered in Moscow. Being the largest housing developer in Russia and Europe, PIK specializes in const ...

- 62.96 billion roubles (1.85 billion US$ or 1.36 billion €) * LSR Group - 60 billion roubles (1.76 billion US$ or 1.29 billion €) The company is the leading construction company in Russia by revenue in 2013 (by RBC Magazine): *SU-155 Group - 3,58 billion US$ (2,71 billion US$ in 2012, 2,81 billion US$ in 2011) *Tashir Group - 3,30 billion US$ (2,9 billion US$ in 2012, 2,6 billion US$ in 2011) *Absolut Group - 2,82 billion US$ (2,83 billion US$ in 2012, 2,93 billion US$ in 2011) In 2013, SU-155 launched 21 public facilities in Russia: 4 schools, 14 nurseries and 3 polyclinics - this is 42% more by capacity in nurseries and 30% more by capacity in schools than 2012 figures. SU-155 Group spent around 1.9 billion roubles (55 million US$ or 41 million €) on building and fitting out public infrastructure facilities in 2013 - 18% more than in 2012.

Charitable activities

In 2002–2005, SU-155 Group reconstructed the St. Nicholas Cathedral in

, founded in the 16th century.Orthodox development: the temple as part of the social order
"

RIA Novosti RIA Novosti (), sometimes referred to as RIAN () or RIA (), is a Russian state-owned domestic news agency. On 9 December 2013, by a decree of Vladimir Putin, it was liquidated and its assets and workforce were transferred to the newly created ...

", 24.04.2013 (in Russian) After the Great October Revolution, the cathedral housed the city's pasta factory for a time. During the Great Patriotic War, the belfry was torn down and laundries were set up in the building. Later, it was used as a warehouse. In 2009–2012, through the efforts of SU-155 and other companies, the

Kronstadt Naval Cathedral The Naval cathedral of Saint Nicholas in Kronstadt (, ''Morskoj Nikol'skij sobor'') is a Russian Orthodox Church, Russian Orthodox cathedral built in 1903–1913 as the main church of the Russian Navy and dedicated to all fallen Sailor, seamen. ...

of St. Nicholas the Wondermaker was restored. The cathedral was closed in 1929, and in Soviet times, it served as a

movie theater A movie theater (American English) or cinema (English in the Commonwealth of Nations, Commonwealth English), also known as a movie house, cinema hall, picture house, picture theater, the movies, the pictures, or simply theater, is a business ...

, quarters for

Baltic Fleet The Baltic Fleet () is the Naval fleet, fleet of the Russian Navy in the Baltic Sea. Established 18 May 1703, under Tsar Peter the Great as part of the Imperial Russian Navy, the Baltic Fleet is the oldest Russian fleet. In 1918, the fleet w ...

officers, a concert hall, and a branch of the

Central Naval Museum Central Naval Museum () is a naval museum in St Petersburg, Russia, reflecting the development of Russian naval traditions and the history of the Russian Navy. The museum’s permanent display includes such relics as the Botik of Peter the Great, ...

. In 2014, with the support of SU-155 Group, construction continued on a chapel dedicated to the church containing the icon of Our Lady “Queen of All Creation” in

Shcherbinka Shcherbinka () is a town, formerly in Moscow Oblast, Russia, and since July 1, 2012 a federal city subject (settlement) of Moscow, Russia. It is located south of the center of Moscow. Population: History It was founded in the late 14th cen ...

, which had come to a halt after the foundation was laid when funds collected for the project ran out. Apart from the aforementioned churches, in the 2000s SU-155 Group restored a

Sunday school ] A Sunday school, sometimes known as a Sabbath school, is an educational institution, usually Christianity, Christian in character and intended for children or neophytes. Sunday school classes usually precede a Sunday church service and are u ...

at the Church of Sts.

Boris and Gleb Boris and Gleb (), respective Christian names Roman () and David (), were the first saints canonized in Kievan Rus' after its Christianization. Their feast day is observed on July 24 (August 6 Gregorian calendar). History According to the tw ...

in Zyuzino (Moscow) and the burnt out church of Holy Father

Sergius of Radonezh Sergius of Radonezh (; 14 May 1314 – 25 September 1392) was a Russian spiritual leader and monastic reformer. He was the founder of the Trinity Lavra of St. Sergius near Moscow, what is now the most venerated monastic house in Russia. He exer ...

in Verkhnyaya Vereya ( Nizhny Novgorod region). It also built the Church of the

Intercession of the Theotokos The Intercession of the Theotokos, or the Protection of Our Most Holy Lady Theotokos and Ever-Virgin Mary, is a Christian feast of the Mother of God celebrated in the Eastern Orthodox and Byzantine Catholic Churches on October 14 (Julian calend ...

in Yasenevo (Moscow), and the Church of the Intercession in

Criticism and discussions in the mass media

Construction delays

Throughout 2008–2012, individual companies in SU-155 Group were repeatedly criticized for serious delays in delivering houses, for postponing under various pretexts the settling of residents and finalization of ownership rights over apartments, and for the lack of heating, hot water and electricity in already settled homes for many months. Purchasers of SU-155 apartments held multiple meetings and protests in Moscow.

Claims by the Moscow authorities

In May 2011, SU-155 was subject to criticism from the Mayor of Moscow,

Sergey Sobyanin Sergey Semyonovich Sobyanin (; born 21 June 1958) is a Russian politician, serving as the 3rd mayor of Moscow since 21 October 2010. Sobyanin previously served as the governor of Tyumen Oblast (2001–2005), Head of the Russian presidential ad ...

. According to the Mayor, in 2009, the city purchased 187 thousand sq. m. of residential housing for 10 billion roubles (295 million US$ or 215 million €) from SU-155, but by Spring 2011, these residential buildings had not yet been settled and the deficiencies had not been corrected. The Moscow mayor's office initiated a claim in court, but SU-155 was able to prove to the court that the breakdown of construction timeframes was caused by the mayor's office, which delayed in providing a construction zone. In February 2013, the Department of Economic Policy & Development of the City of Moscow initiated a claim against SU-155 in the Moscow City Arbitration Court, demanding that the company return 3.5 billion roubles (102 million US$ or 75 million €) to the budget. In May 2013, the conflict was resolved by peaceful agreement, in accordance with which the Department of Economic Policy & Development of the City of Moscow maintains its contract with SU-155 and renounces its financial demands. In turn, SU-155 will return 256.5 million roubles (7.5 million US$ or 5.5 million €) to the city budget of Moscow, which the company received as an advance, and will also build 7 out of the 8 planned buildings.

Changes in the planning of already sold structures

In November 2012, the company was subject to criticism for independently changing the designs of several homes in the Novaya Tryokhgorka community: the size of apartments and the shape of rooms were changed. In June 2013, SU-155 signed an agreement with a residents' public interest group (a social charter), which, among other things, secured a return to the initial plans of the apartments, and also the construction of a children's art school for the community's residents, previously not part of the project.

Interesting fact

In 2009, SU-155 won the rights to the internet domain name su155.net by court action, which previously hosted the website "SU-155: the myths and reality, the website of cheated co-investors in SU-155", created by displeased clients. The domain, registered by the Australian registrar Melbourne IT to a resident of the United Kingdom, was adjudged by a developer in the commercial court attended by the

World Intellectual Property Organization The World Intellectual Property Organization (WIPO; (OMPI)) is one of the 15 specialized agencies of the United Nations (UN). Pursuant to the 1967 Convention Establishing the World Intellectual Property Organization, WIPO was created to pr ...

(WIPO).

References

External links

SU-155 website

SU-155 website
* Ekaterina Gerashchenko
«По-моему, цена на жилье и так запредельная» (interview with Mikhail Balakin)

Kommersant (, , ''The Businessman'' or Commerce Man, often shortened to Ъ) is a nationally distributed daily newspaper published in Russia mostly devoted to politics and business. The TNS Media and NRS Russia certified July 2013 circulation of the daily ...

, 22.04.2014. (in Russian) * Ekaterina Gerashchenko
«I Think Housing Is Overpriced» (interview with Mikhail Balakin)

, 22.04.2014. (in English) {{DEFAULTSORT:Su-155 Home builders Real estate companies of Russia Building materials companies of Russia Construction and civil engineering companies of Russia Manufacturing companies of Russia Mechanical engineering companies of Russia Privately held companies of Russia Companies based in Moscow Manufacturing companies established in 1993 Holding companies established in 1993 Construction and civil engineering companies established in 1954 1954 establishments in Russia Defunct companies of Russia Manufacturing companies disestablished in 2015 2015 disestablishments in Russia Construction and civil engineering companies established in 1993 Russian companies established in 1993