28 Nov 2023 09:28

Russia's Inarctica aims to double fish production in 5-7 years - CEO

MOSCOW. Nov 28 (Interfax) - PJSC Inarctica , Russia's leading producer of farmed Atlantic salmon and trout, plans to double production to 60,000 tonnes per year in five to seven years, which will require capital expenditures of about 20 billion rubles over five years.

"In order to double volumes, reach about 60,000 tonnes of fish per year, we estimate capex very tentatively at 20 billion rubles. We're talking about doubling [...] in about five to seven years. For five years, say, we tentatively need this capex," Inarctica CEO Ilya Sosnov said in a SberCIB webinar on the company's SPO on the Moscow Exchange .

He said it is very difficult to give a more precise timeline because "there are many unknowns, there's uncertainty regarding many technology solutions."

Speaking about company projects, he recalled that the company plans to launch a plant in Kondopoga in 2024 to produce 6 million fry per year.

"In order to grow further we need another fry plant. We plan to build it in Retinskoye (Murmansk Region), a very good location in our view. This project lays the main foundation for doubling production," Sosnov said, adding that it is difficult to estimate the cost of this project at this point.

Investment in another project, a plant to produce feed with capacity of 70,000 tonnes per year, will total 4.5 billion rubles, he said.

"This should be enough for 45,000-50,000 tonnes of product. We also plan to purchase additional feed from the market. We see that many projects have been implemented in Russia and friendly countries, there is supply," Sosnov said.