March 8, 2013

A complex for reception, separation, drying, storage and processing of grain and oil-bearing crops is planned to be built by Moscow-based construction company Vikon in the Tambov region's (Central) Uvarovsky District.

The facility's turnover will amount to 250,000 tonnes per year. Investments in construction will exceed RUB2 billion (US$65.57million). The project includes construction of a grain and oil crop processing complex with a capacity of up to 500,000 tonnes, and a grain elevator that can simultaneously store 110,000 tonnes of grain (later can be increased to 220,000 tonnes). The first stage of the elevator should be completed in 2013, with investments in construction totalling RUB850 million (US$28 million).

The second stage will include construction of milling, compound-feed (solid and liquid), seed, and cereal sections in 2014. Investments are estimated at RUB1.20 billion (US$39 million). The financing will be provided from the company's own funds, and from borrowed funds. The company currently conducts negotiations with large Russian banks and a German partner. The names of the banks are not reported.