A Dairy Complex Worth 1 Billion Rubles Will Be Built in the Smolensk Region
Governor Alexey Ostrovsky has held a working meeting with CEO of Invest Finance Ltd. Mikhail Panchenkov. During the meeting the participants discussed investment projects currently implemented within the Smolensk Region, as well as paid attention to the long-term plans for the company’s strategic development aimed to boost further production growth within the region.
It should be noted that Invest Finance Ltd. is the founder of Shujskoye Agricultural Enterprise JSC (Vyazma District) and Baltutino LLC (Glinka District). The company is also implementing one more investment project within the Smolensk Region based on Gagarinkonservmoloko CJSC, which includes expansion and upgrade of production facilities.
It should be recalled that a cooperation agreement on agriculture has been signed by Governor Alexey Ostrovsky and Invest Finance Ltd. management during the Russian Investment Forum in Sochi last February. The agreement prescribes implementation of the investment project by Shujskoye Agricultural Enterprise JSC, which includes retrofitting of a livestock breeding complex in the Vyazma District which is designed for 1,500 units of cattle, including, 750 Holstein cows. While working on the project and having received support from the Regional Administration Office, the investor decided to fulfill even more ambitious plans and to double the production capacity. Mikhail Panchenko also added that the investment project for building a dairy complex for 3,000 units of cattle, including 1,200 forage-fed cows, will be implemented in 2020-2021 on the basis of Baltutino LLC in Glinka District. The total amount of planned investments will be at least 950 million rubles and will exceed the previously expected amount more than twice. At present design and estimate documentation for the dairy complex construction is being developed.
Speaking about further development of Gagarinkonservmoloko, the investor commented that a project for milk whey processing and production upgrading has been completed. Construction of a new shop to produce powdered milk products is about to start. “We are going to participate in a federal targeted programme for developing infant food production. For our part, we are fully ready for that and this year we are expected to implement this project. We are currently negotiating with the largest consumers and producers of infant formula in Russia to unite efforts for joint implementation of framework projects and localizing production facilities. This is an example of direct import substitution,” noted Mikhail Panchenkov, having appealed the region’s chief executive for supporting the project at the federal level.
Taking into account the relevance and importance of the issue, Governor Alexey Ostrovsky has put his deputy Rostislav Rovbel in charge with preparing appropriate appeals to Deputy Prime Minister of Russian Federation Alexey Gordeyev and Minister of Agriculture Dmitry Patrushev. The region’s chief executive also expressed readiness to assist in organizing and conducting negotiations with baby food producers.
In the course of discussions, CEO of Invest Finance Ltd. stressed that implementation of investment projects at production facilities in Boltutino and Gagarin will help raise additional funds into the region’s economy thus totalling to nearly 1.5 billion rubles.
After that Alexey Ostrovsky and Mikhail Panchenkov signed an agreement of intent between the Administration of the Smolensk Region and Baltutino LLC stipulating cooperation of the participants in the course of the dairy complex construction.