AMURSKY OIL EXTRACTION PLANT

 
5,8 billion rubles Total investments
560 Number of jobs
EBITDA margin: 11%

Payback period: 6 years

IRR: 28%

Amursky Oil Extraction Plant owned by Amuragrocenter is the first deep soybean processing plant in Russia producing soybean protein isolate. Until now, this product was 100% imported.

It is not by chance that the project has become an “anchor” resident of Belogorsk priority development area. It may have a substantial impact on large-scale livestock breeding development projects, since it will be able to supply them with quality compound feed.

The project is implemented in three stages.

In 2016, key production facilities (grain preparation, oil extraction and refining shops, boiler room) were built, and process equipment was installed.

Investments in the construction of the first stage amounted to about 1.7 billion rubles. The company used equity and also obtained an investment loan from VTB bank under a project financing program.

At the beginning of 2017, the plant will be running at full capacity processing 240 thousand tons of soybeans per year and producing soybean oil, feed and food grade soybean meal and soy lecithin.

At the second stage, the plant will launch production of soybean isolate and oligosaccharides for the food and confectionery industry. The facility will operate with the capacity of ~10 thousand tons of isolate per year.

The Far East Development Fund acknowledged the construction of the first enterprise of this type in Russia as a priority project and will provide financing in the amount of up to 2.1 billion rubles.

At the third stage, the company plans to expand soybean isolate production capacities to 20 thousand tons per year.

40% of soybeans in Russia are cultivated in the Amur Region. So, the plant is located in the very center of the area where the feedstock grows and in the major transportation node, which helps to ensure efficient logistics. The idea to create a deep soybean processing plant appeared after studying the existing market of isolated proteins and other food grade soybean products. The facility to be created will target import substitution, expansion of the product range and the volume of soybean processing products in demand. Besides, these products are very popular in neighboring China.

Amuragrocenter general director Alexander Sarapkin:

“State support mechanisms like soft-term financing provided by the Far East Development Fund, preferences for the residents of priority development areas are extremely important to implement complex industrial projects in the Far East. In particular, being a resident of a priority development area, our company is granted the whole range of tax benefits from the time we generate profit for the first time, which includes relief from property and land taxes and reduction of insurance contributions for 5 years. Benefits obtained in a free customs zone already helped us to deliver equipment to the facility with no need to pay any customs duties, saving us over 100 million rubles. Generally, thanks to the special regime of the priority development area and soft-term financing provided by the Fund, we managed to reduce the project payback period by 4 years to the total of 6 years. We plan to reinvest our savings in further expansion of production capacities.”

Start-up: launch in Q1 2017
Gross regional product growth by 22.5 billion rubles by 2026 resulting from project implementation
100 million rubles saves at the first project stage due to the free customs zone preferences will be reinvested in the expansion of production.
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