Donbiotech to break ground on amino acids plant in Rostov Region in May
ROSTOV. Dec 27 (Interfax) - LLC Donbiotech, a joint venture between the Russian Agribusiness Trust Group (RAPT Group) and Germany's Evonik Industries, will begin building an amino acids plant in Rostov Region's Vologodonsk district in May 2013, Deputy Governor Vyacheslav Vasilenko, who is also the region's agriculture and food minister, told reporters on Wednesday.
"Production of lysine will total 79,000 tonnes per year. The official start of construction will be in May 2013, but 200 million rubles have already been spent on this project. The price of the project is EUR180 million. The amount of grain processed will be 250,000 tonnes per year; this will be Class 4-5 wheat," Vasilenko said.
The project was initially scheduled to launch in mid-2013, but then it was pushed back to 2014.
There were plans to initially process 250,000 tonnes of grain and in future double capacity. The plant will produce lysine and gluten, as well as formula feed. The payback period is expected to be 6.5 years. The project will create 200 jobs.
RAPT Group and state corporation Rusnano signed a cooperation agreement for this project in 2010. Later it was announced that Evonik Industries, one of the world's leading producers of specialty chemicals, would be involved in the project.
RAPT Group is a vertically integrated agribusiness group, the core business of which is production and processing of pork. The group includes feed plants, pig farms, meat processing plants, and distribution units.
