Cherkizovo Group, Russia’s largest meat producer, has announced the signing of an investment protection and promotion agreement (IPPA) for the construction of an oil extraction plant in the Lipetsk Region. The facility will cost RUB 13.8 billion (incl. VAT).
The agreement to construct a high-protein oilseeds processing plant in the Yeletsky District of the Lipetsk Region was signed by the Russian Ministry of Economic Development, the local authorities, and Cherkizovo-Masla (part of Cherkizovo Group). The project will be implemented in two stages. The investment phase is set to be completed by mid-2022, at which time the oil extraction plant will be brought on stream. The second stage, which is slated to run until late 2033, will see the construction of infrastructure, including a railway line to/from the facility. By this point, the plant will have reached full processing capacity.
PROCESSING CAPASITY TO BE 480,000 TONS
It is planned that Cherkizovo Group’s facility will process soybeans and produce soybean oil, meal, lecithin, and hulls. The plant’s processing capacity is estimated at up to 480,000 tons per year. Once launched, the facility will create some 100 new jobs in the region.
Once the oilseed processing plant is online, the Group will become more self-sufficient in respect to feed ingredients. To implement the project, Cherkizovo Group will spend RUB 13.8 billion (incl. VAT), which includes investments of RUB 8.8 billion.