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ALROSA cuts non-production costs

  • Published in Economy
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ALROSA continues to optimize its administrative expenses. The company has more than 40% reduced the cost of servicing an office building that houses the ALROSA Moscow office.

ALROSA summed up an open request for proposals on the choice of a company that for the next three years will carry out comprehensive operation of the office building of ALROSA on Ozerkovskaya Embankment in Moscow. The building acquired by the diamond-mining company in 2013 houses the Moscow administrative staff of ALROSA.

13 companies took part in the request for proposals. When choosing a winner, in addition to price conditions, the company's experience in the market was evaluated, primarily in the operation and maintenance of office buildings of comparable size.

RD Management Services won with a contract price of not more than 115.8 million rubles, which allows for more than 40% reduction in total office maintenance costs compared to the previous period. The winning company has extensive experience in managing commercial real estate and resources that enable it to provide a full range of services.

The contract will be valid until the end of 2021. The building occupied by ALROSA has an area of more than 11 thousand square meters and is part of the Aquamarine business center. Today, this office is basic for the Company in the capital, work is underway to consolidate the divisions of the Moscow administration in it. As previously reported, the Company returned the previously leased office building to the city at 1st Kazachiy Per, 6, Building 5. Preparatory activities are carried out for subsequent sale of another two buildings located in the same lane and owned by the Company.

“Along with other measures of reasonable economy, we continue to reduce administrative expenses in cases where it does not affect the quality of the Company's work. Selection of contractors based on open and transparent procurement procedures increases the effectiveness of such measures. A significant reduction in the cost of operating office space is a good example,” noted the head of ALROSA Administrative Department Sergey Slobodin, recalling that over the past year the Company has not only gotten rid of the excess office fund, but it also liquidated its representative offices in Moscow and Orel, optimized the car fleet and the staff of Transport Department of the Moscow Administration.