Moscow-based operator goes for bigger share on Russian crab sticks market (CORRECTED VERSION)
OOO Frigate (ltd), Novgorod, specializing in pre-packing of seafood and crab sticks production, is completing the first stage of the construction of the industrial cold store with the capacity of one thousand tonnes and the packaging line for cooked cold water shrimps in Novgorod region in the north-west of Russia. These facilities are going to be put in operation in November 2008, reports www.fishnet-russia.com with reference to "Novgorodskie vedomosty".
According to the company's CEO, initially the production volume on the shrimps packaging line which is going to work in one shift will total up to 210 tonnes per month. The potential production capacity of the factory is about 600 tonnes.
Apart from production and packaging facilities of the factory occupying 2.2 hectares, there will be two industrial cold stores with combined capacity of 3 thousand tonnes for storage and freezing not only own products.
According to the company's administration, 90% of investments came from Moscow-based companies, the rest- from private individuals.
Initially all products of the company will be sold through the distribution company "Norton" which is one of the project's initiators. As there is quite an intense competition on the Russian market, the company's founders have come to a conclusion that it will be possible to set a lower price for products and at the same time keep its profitability due to the proximity to the ports of St. Petersburg and innovative technologies.
In autumn 2009 OOO Frigate (ltd) is planning to install one more line for the production of crab meat and crab sticks. The production volume is going to be 9 thousand tonnes per year.
According to the interregional marketing centre "Moscow", crab sticks consumption market is very promising with growth rate being 10% per year. According to market players, the total annual sales of crab sticks amount to 30-35 thousand tonnes and OOO Frigate (ltd) can challenge to win at least a quarter of the market thus to become a significant player on the Russian market. The project's success depends on what kind of products the Novgorod-based company is staking. The fact is that at present the demand is switching from deep frozen to chilled products. The experts also predict the growth of raw material cost and point out other difficulties that may affect the capability of the new producers to keep the right price-quality ratio. At present TM Viciunai is considered to be the leader in the middle price category.
About Frigate Company
The company was established for the project development in Veliky Novgorod, Russia.
OOO Frigate (ltd); 67, Bolshaya Moscovskaya str., Veliky Novgorod, 173020 Russia; tel. +7 8162 671912, +7 921 7393149; e-mail: firstname.lastname@example.org