September 3, 2013

With its creditors asking for about RUB312.6 million (US$10 million) for the complex, Vereschaginsky Mill (VKHP), the largest animal feed producer in the Perm Region of Russia with capacity of 630 tonnes of feed/day, has been put up for sale.

"It is very important to keep production at VKHP going, as it's the only facility in the region producing animal feed on an industrial scale," Acting Agriculture Minister of Perm Region Ivan Ogorodov said.

However, VKHP has for a long time been unprofitable and in 2011 it was declared bankrupt. At the time experts predict that the mill will be hard to sell.

"The negotiations on the sale are on-going but they are still only at the talk's stage. In such situations we cannot be sure that the mill will be bought any time soon," says the manager of the mill Lyudmila Vlasova.

One of the main reasons for lack of interest from potential buyers, according to Vlasova, is that the mill requires a serious investment to modernise the production process.