PRESS: Russia's UGC to invest $1 bln in deep grain processing
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MOSCOW, Aug 12 (PRIME) -- Russia's United Grain Company (UGC) plans to invest up to U.S. $1 billion in the construction of production facilities to start deep grain processing to produce protein, amino acids and other sophisticated ingredients, used in the food processing industries, business daily Kommersant reported on Monday.
The company may start the construction of the first, $300 million plant with the production capacity of 500,000-1 million tonnes of grain in Novosibirsk or Altai regions, company CEO Svetlana Savchenko said
"The technologies of deep grain processing which Russia is using, have become obsolete. We expect the consumption of such products to grow considerably in the next three years, that is why it is necessary to create necessary conditions for the construction of modern enterprises," Russian Grain Union President Arkady Zlochevsky said.
The project will help the company reduce costs and increase profit, as most deep grain processing products bear a high-margin, he said.
The new business will diversify risks, associated with trading and infrastructure costs,.
Founded in 2007, UGC received stakes of 30 companies across 18 regions from the government. In 2012, multi-industry holding Summa, owned by tycoon Ziyavudin Magomedov, purchased a 50% minus 1 share stake in UGC for 5.951 billion rubles.
(32.8606 rubles - U.S. $1)
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25.08.2013, 3771 просмотр.
