August 19, 2013

Russia's UGC to set up deep grain processing worth US$1 billion

Russia's United Grain Company (UGC) plans to invest up to US$1 billion in the construction of production facilities to start deep grain processing, in order to produce protein, amino acids and other sophisticated ingredients used in the food processing industries, .

UGC may start the construction of the first US$300 million plant with a production capacity of 500,000 - 1 million tonnes of grain in Novosibirsk or Altai regions, company CEO Svetlana Savchenko said.

"The technologies of deep grain processing which Russia is using have become obsolete. We expect the consumption of such products to grow considerably in the next three years, that is why it is necessary to create necessary conditions for the construction of modern enterprises," Russian Grain Union President Arkady Zlochevsky said.

The project will help the company reduce costs and increase profit, as most deep grain processing products bear a high-margin, he said. The new business will diversify risks, associated with trading and infrastructure costs.