Investment Promotion Agency of Rostov Region

News Room

7 August

THE PROJECT OF THE SUGAR PLANT IN ROSTOV REGION RECEIVED THE POSITIVE CONCLUSION OF THE EXPERTISE

At the beginning of August the project of “International sugar corporation” on construction a sugar plant in Tselinskiy district of Rostov region has received the positive conclusion of the expertise. As reported by the “Investment promotion agency of Rostov region”, permission for building an enterprise is expected within a week.

“A new stage of the first Don sugar plant project is beginning in the enabling environment, – noted the CEO of the “Investment promotion agency of Rostov region Igor Burakov. – Last year Russia became the world leading sugar beet produced, by collecting more than 50 mln tons. The Don region also set a record, bringing more than 1 mln tons of sugar beet, the crop yield reached  54,46 t/ha. The region’s own sugar plant - an urgent need of the Don agricultural producers, who carry the beet harvest for processing for 200-400 km with the optimal transport leg up to 100 km.”

Due to its strategic importance for the region, the future sugar factory receives the support of the governor of Rostov region Vasily Golubev, it is aslo included in the "Governor's hundred" of investment projects prior for the region. The project is supported at the level of the federal government, the Russian Ministry of Agriculture. The sugar production on the Don will be launched with the technical assistance of the French company Sucden, one of the world leaders in the industry.

Experts from the Belgian company De Smet and the Russian one "Antoniuk and Company" designed 74 objects, both imported and domestic equipment will be used to equip the enterprise. The announced volume of investments is 18 billion rubles, the processing capacity is 12,000 tons of beet per day, the plant's productivity is 1,700 tons of sugar per day.

The sugar project in the Rostov region currently can claim the status of the largest one in the Russian Federation in the food production. According to expert estimates, the production of sugar on the Don will give a significant positive multiplier effect for the regional agribusiness: the launch of the plant will improve the crop rotation in the farms, as sugar beet is a good predecessor for other major Don crops. In addition, the Rostov region has already grown consumers of products of the future sugar plant. In particular, according to the Investment Promotion Agency of the Rostov Region, the biggest in Eastern Europe Coca-Cola plant that successfully works in the Azov district is interested in Don sugar.

Objectively, the Don region is one of the best places in Russia for building a sugar factory in the Greenfield format, from scratch. The location was chosen in the center of the raw materials base, in the "ring" of southern regions of Rostov region, traditionally cultivating sugar beet (Kagalnitskiy, Zernograd, Egorlykskiy, Tselinskiy, Peschanakopskiy, Salskiy).

Most of the existing sugar factories in the country were built in the 50s - 60s - 70s of the last century. The new sugar plant will be the most advanced in technology, and also the most powerful in its industry in Russia. Available raw materials, successful logistics, innovation will allow the first Don sugar factory to produce high-quality products at one of the lowest, if not the lowest cost in Russia.