Leading Russian processor to invest 100 million USD into production boost

May 25, 2007 16:50

The Russian Sea Company based in Moscow is extending its production capacities by building a new plant and a cold store in Noginsk (Moscow district). Besides the company plans to start breeding rainbow trout in Republic of Karelia (Russian province bordering on Finland) and to extend its range of products.

The company intends to invest more than 100 million USD in production development to be partly finance by issuing 5 year-bonds to tune of 2 billion Russian rubles, according to RBC.

The report pointed out that the Russian Sea Company is owned by Cyprian company Aurora Industries Ltd.

In 2006 the revenue was 2, 5 billion Russian rubles less VAT.

Market capacity in Russia according to estimates of the Russian Sea Company is 5 - 6 billion USD.

The company plans to invest 390 million Russian rubles in building a new plant in Noginsk (they have already one more plant in Noginsk).

The new plant is to double the Russian Sea Company's production capacity. Next to the plant there will be a coldstore and further production facilities (valued at 1 - 1, 3 billion of Russian rubles).

The processor will extend its range of products as well. Among the novelties one can name fish spreads, caviar and non-finfish spreads, new items of caviar, ready-to-eat products and easy-to-cook products, surimi products etc.

The raw material is supplied by the affiliated company The Russian Fish Company based in Moscow.

The raw material in mainly imported but the Russian Sea Company plans to develop its own fish farming facilities. The company has already purchased "Segozerskoe" complex based in Karelia for trout breeding.

By 2009 the production capacity of the farms will achieve 9000 - 10,000 tonnes. They will invest in the project up to 800 billion Russian rubles. To develop this business the company is ready for different types of cooperation with companies from other countries (as well as setting a Joint-Venture and etc.). Other regions of Russia are also on agenda for setting up production facilities.

This year investments volume will reportedly achieve about 3 billion Russian rubles. Towards that end in June 2007 they are planning to issue bonds of the Russian Sea Company.

According to analysts, the Russian Sea Company has a very strong position on Russian fish market especially on Russian herring market. Among other leading companies are Santa-Bremor (JV) and ROK (based in Saint-Petersburg).

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