| Meat-processing |
Later on managemnt of the holding considers the realization of subsequent project stage. Beside the pig-breeding plant slauter-hose, mixed fodder plant and packaging shop are to be erected
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The total volume of invetment in the project amounts 200 mill. roubles (ca. USD 7.72 mill.). Cattle and pig slaugher lines operate independently. The second project stage is designated for production of convenience food and meat products (sausage). Investment in the following stage will amount 700 mill. roubles (ca. USD 27 mill.). If the plans come true the enterprise makes the biggest meat-processing plant in the region
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In the current year overall expanditures for equipment procurement amount 21.7 mill. roubles (ca. USD 838,000). In 2008 - more than 25 mill. roubles (ca. USD 965,000). Equally large amoount of investment is assigned for reconstruction. The financial sourcing is based on the investment credits and private investments with utilization of leasing schemes. Profound reconstruction of sausage and tinned food shops is planned to be completed this year. Additional equipment will be purchased for the canning facility. Modernization of rough stuff department is currently carried out. The nearest plans cover the foundation of slaughter-house. In assistance with partners in Ketovsky region the construction of pig-breeding plant (10,000 heads) is planned for the nearest future.
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| Bakery and confectionary |
Holding has launched modernization of its bread baking production facilities in Omsk. Now the
overall batch production rate of all facilities amounts appr. 100 metric tones that according to the
estimation of the market experts equals 50% share of the Omsk market. Planned reorganization
of production facilities is aimed at the optimization of the organization structure and production
process, as well as consolidating the management of all production facilities. New production
equipment at the cost of EUR 1 mill. is currently being supplied from Italy. Simultaneously
Holding is completing the establishment of bread baking mini-works net in which EUR 3 mill.
has been already invested. According to other plans Holding is going to construct 2 grain
transshipment terminals each worth of USD 50 mill. The annual capacity of the first terminal (at
Sea of Japan) amounts 3.5 mill. tones. The second terminal in Kaliningrad region will provide
annual capacity of 1.5 mill. tones. Besides the Holding is now occupied with launching of its
new plant for production of concentrated juices out of Siberian berries. The first pilot batch of
new product has been already produced. Berries are to be supplied from Novosibirsk region and
adjacent territories.
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JSC 'Kazan Bread Baking Plant No. 3' invested EUR 5 mill. in purchase of production lines to
manufacture cream cakes and pastry. Modern creamers and ovens have been already purchased
in Italy. Major part of equipment is delivered to Kazan. Installation will be completed by the end
of June. The initial production capacity of modernized facilities will not exceed 300 kg per day,
but in the future the production rate will reach 1 tone of bread stuff daily.
JSC 'Kazan Bread Baking Plant No. 2' soon will launch into operation its new computerized
production line for bread sticks. The plant has paid for the unique equipment from Czech
Republic 20 mill. rubles (appr. EUR 700k). The daily production capacity of the automated line
is 9 tones of bread. Formerly 8 workers used to maintain the operation of the old production line.
Now the production process requires only 3 workers. Another advantage of the new line –
highest consistency of produced bread sticks due to the computerized controller that supervises
the whole production process – from forming to baking.
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| Meat-processing |
Meat Corporation 'EuroService' has concluded a contract with Austrian company Schaller
Lebensmitteltechnik for supply of advanced production lines for meat convenience food
products. The purchased equipment will be installed at two meat-processing plants – 'Beldensan'
(Republic of Belarus) and agricultural production complex 'Baltiysky Bekon' in Kaliningrad.
The total value of sold equipment – EUR 10 mill. According to the project the installation of 4
production lines of overall capacity of 5,000 tones monthly is planned. The development plan
contemplates reaching of the mentioned production capacity in autumn 2006. The production of
initial batch is planned for the end of September- beginning of October of the current year.
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So far MosSelProm specialized on poultry farming. Now it is going to enter the club of pig-
breeding complex owners. The company began construction of a large pig-breeding farm in
Orlov region. The pig-breeding complex is designed for housing of 216,000 head of pigs.
Investment in the project amounts R.Ru 2 bill. (appr. USD 74 mill.). MosSelProm is planning to
finance the project from its own resources as well as by obtaining borrowed funds. The
administration of Orlov region will provide communication means and roads and also will
provide credit subsidy for two thirds of the loan destined for construction purposes. The first
stage development with capacity of 108000 head of pigs will be commissioned in 2007. Upon
reaching planned production capacity the complex will produce 25,000 metric tones of meat
annually. In addition to pig-breeding complex MosSelProm plans to build a slaughter-house at
the cost of R.Ru 600 mill. (appr. EUR 17,650,000).
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Company 'EuroDon' (town of Shakhty, Rostov region, Russia) began production of turkey meat
on its poultry farming complex with planned production capacity of 63,000 tones of meat
annually. The total amount of investment in the project amounts EUR 38.2 mill. Out of which
EUR 28 mill. were provided by VneshTorgBank that also obtained borrowed funds from French
BNP Paribas. The Federal Government provided credit subsidy for two thirds of refinance rate
for the borrowed funds of 17 mill. rubles. 8 mill rubles came from the regional budget. The first
testing lot of eggs was loaded into incubator in December 2005. At present the first lots of birds
are being slaughtered. On the 1 of April the company executed the commercial loading of
100,000 turkey eggs and thus entered the second stage of its project. The industrial scale turkey-
processing including production of packed convenience products will start in September 2006. It
is planned by this time to complete the construction of poultry-processing facilities.
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The total cost of the industrial project amounts R.Ru 160 mill. (appr. USD 6 mill.). The
borrowed funds were provided by the Federal Government in the context of practical realization
of federal program for agricultural development. The construction of the cattle-breeding complex
will be completed in December of the current year. The enterprise is located on the total space of
8 hectares. It will be constructed with consideration of newest breeding technologies due to
which livestock will be increased by 400 heads and milk yield – by 4,100 tones.
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| Milk-processing |
OOO "Nastyusha-Chernozem'e" (incorporated in agricultural holding 'Nastyusha') declared of
intentions to construct 9 dairies, reconstruct 2 milk-processing plants and to build or buy a meat-
processing plant. The total value of investment amounts R.Ru 3 bill. (appr. EUR 88.2 mill.).
The construction of the first dairy designed for 1,200 heads has been already initiated in
Dobrinsky region. By the end of the current year the agricultural holding is planning to build 4
more similar dairies, in 2007 – 5 more. The realization of one such project will cost the company
R.Ru 323 mill. (appr. EUR 9.5 mill.). The head company will draft a part of needed financial
resources, the rest will be obtained as borrowed funds.
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| Fish-processing |
At the end of June - at the beginning of July the most large-scale in Russia fish-processing plant
"Reidovo" is to be put into operation on the Kuril island Iturup. Fish-processing plant (400 tones
of raw fish per day) and refrigerator facility for finished stuff warehousing (3,000 tones) are
situated on the total space of 6,500 square meters all in a single complex. Infed in the vacuum
pump on the pier the fish is then transported to the workshop and further through all processes up
to shipping under the same roof. At labor picks the plant will employ up to 600 workers. Fish-
processing plant "Reidovo" is a part of industrial and transport complex in the Olya bay (Iturup
Island, Kurils) the erection of which began in 2003 with construction of deep-water pier. Today
the latter is the only fundamental berth complex on the Kuril Islands that permits to harbour and
unload at the wall the vessels of displacement up to 3,500 tones.
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| Vegetable-processing |
The Project Institute 'PishePromProject" has commissioned its work over the project for
construction of canned food plant requested by OOO 'Kubanskie Konservy". The latter, being the
subsidiary company of Cecab Group, will specialize on the production of canned peas, legumes
and sweet corn. The plant will be constructed in Timashevsk on the space of 30 hectares.
Additional 6 hectares were assigned for cropland as the major part of canned stuff is to be
produced of the domestic grown crops. The overall production capacity of a new plant will
amount 80 mill. cans per year. The estimated investment volume allotted for the project – EUR
35 mill. In 2006 Cecab Group plans to provide EUR 20 mill. for the project realization. The
construction will be completed in 2007.
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| Fat-and-oil industry |
In the nearest future EFKO Group will double its capacities for production of specialized fats.
Soon construction of processing plant as well as transshipment terminal will be initiated on the
Black Sea coast. EFKO Group has purchased 11 hectares of land on the Black Sea coast in the
Krasnodar region. It is planned to build on this site the transshipment terminal for palm-oil and
the processing plant that will produce specialized confectionary fats as well as substitutes for
cacao-butter and dairy fats. Mainly tropical butters will be processed on the plant. The plant will
produce monthly up to 16,000 tones of fats, of which 70% EFKO will export. The cost of
construction will come to appr. USD40 mill.
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| Packing |
The largest in the world paper and cardboard manufacturer from Finland, Stora Enso, has
decided to build its third corrugated packaging plant in Russia, at Lukhovitsy, some 130 km
southeast of Moscow. The annual production capacity of the plant, which will employ some 175
people, will be 150 million m2 of corrugated board. The capital expenditure is estimated at EUR
54 million. Construction of the plant will begin in September 2006, with production starting up
in the first quarter of 2008.
Stora Enso has positive experience of the corrugated packaging business in Russia and aims to
be the leading producer of corrugated board in the European part of Russia.
The new plant will serve the growing demand for high-quality packaging in Russia, especially in
the Moscow region. Customers will be mainly in the food, beverage, cigarette and electronics
industries, representing both international and Russian brands.
Stora Enso already has two corrugated packaging plants in Russia. The first plant started
operations at Balabanovo in 1998 and the second at Arzamas in 2004. The two plants have 450
employees and produced a total of 215 million m2 of corrugated packaging board in 2005.
Stora Enso Packaging, Balabanovo Mill, Russia
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