Voronezh Region saw considerable overproduction of sugar-beet last year with 16 percent of beet left unharvested.
Photo: Valery Melnikov
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Hungarian Developers to Build Sugar Refinery in Voronezh
Hungary-based TriGranit Development Corporation is going to invest up to $250 million to build a sugar refinery outside Voronezh in Central Russia. Sugar producers say that the purchase of plants and increasing their capacities are far more profitable ways of doing sugar business than starting it from scratch.
TriGranit Development Corporation is going to build a sugar refinery in the region with the capacity of 12,000 tons of beet a day, Voronezh Region Governor Vladimir Kulakov reported Thursday. Market experts estimate the project to be worth between $180 and $250 million.
TriGranit Development signed a deal with Gazprombank-Invest earlier this year, declaring intentions to set up an investment fund on a parity basis. The partners are planning to build real property in Moscow, St. Petersburg, Krasnodar and probably in Yaroslavl.
Pyotr Roshchin, TriGranit’s development director in Russia, says the company’s president Sandor Demjan has some agrarian business, including several sugar assets. Mr. Demjan owns Euroinvest which is now building a sugar refinery in Ryazan Region.
TriGranit Development Corporation is the largest development company in Central Europe with current plans to build real property worth ˆ8 billion in ten countries.
Voronezh Region experienced considerable overproduction of sugar-beet last year with 16 percent of beet left unharvested because of the shortage of sugar refining faculties. This year, the region will cultivate 800,000 tons of beet more than it did last year, according to Deputy Governor Ivan Dubovsky. Many sugar producers, meanwhile, are increasing their refining capacities. The Prodimeks group alone plans to spend ˆ54 million to revamp its facilities.
Market experts say, however, that construction of a sugar refinery is a not very profitable venture. The project will start paying back in at least 15 years’ time, says Alexey Knyazev, director general of Rusagrotsentr.
www.kommersant.com
All the Article in Russian as of Mar. 23, 2007
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