December 14, 2010

United Grain Co. to invest in grain handling

United Grain Co. intends to raise at least RUB13 billion (US$421 million) to invest in grain export and handling properties in Russia over the next three years, said CEO Sergei Levin.

The government will invest RUB3 billion (US$97 million) and RUB10 billion (US$324 million) will be raised from private investors and banks, said Levin. United Grain plans to spend the money on two grain terminals in Novorossiysk and Yeisk by 2013 and to build two grain export terminals, Levin said.

United Grain plans to start a transportation subsidiary with another company, and asked for assistance from the Russian Railways to find the partner, Levin said. The new venture would own 3,000 railway cars and may start operations by the end of next year, he said.