January 14, 2016

Kemin to establish feed ingredients plant in Lipetsk, Russia

As part of its global growth plans, Kemin Industries has formed a new subsidiary in Russia called Kemin Industries (Lipetsk) LLC.

Kemin will operate in the Special Economic Zone of Lipetsk. This development is 15km outside the town of Lipetsk and 438km southeast of Moscow.

The company's plan is to build a facility with manufacturing and administration offices, a lunch room, a quality lab security building and warehouses.

The investment is one of many made since Kemin shared its five-year expansion plan setting forth strategic investments for its operations in Brazil, Russia, India, China, South Africa and the US.

"As aggressive as we are on making these investments, the world's population growth is equally aggressive," said Dr. Chris Nelson, CEO of Kemin. "In (more than) 50 years of business, the need to provide high quality animal protein nutrition has never been greater. We must keep investing, innovating and growing to provide ingredients that improve the health and well-being of people and animals around the world."

Construction of the new facility near Lipetsk is scheduled to begin in 2016 and completed by spring 2017. By next year, Kemin will have the capacity to manufacture specialty feed ingredients including additional space to add new lines of manufacturing and different classes of solutions in the future.

Kemin - which conducts business in 90 countries, with regional headquarters in Europe - has been selling feed ingredients in Russia for 20 years. In 2014, the company opened a fully equipped customer service laboratory in Moscow to better serve the feed industry and its growing customer base.

"Russia is one of the largest animal feed markets in Europe producing 25 million tonnes of feed last year," explained John Springate, Kemin's Senior Vice President of Technology Acquisition. "Localising manufacturing will reduce order to delivery time for Kemin customers, ensure local availability of high quality feed ingredients, reduce supply chain risks due to transportation, and increase collaboration between our scientists and those we serve, which will likely result in new products tailored for the Russian market."