The Expert Council of Lipetsk Special Economic Zone, chaired by the region governor Oleg Korolev, was first held under a new, recently modified procedure on December 7th 2016.
All of the three candidate companies, that had earlier submitted their business plans for the council assessment, got the board endorsement to sign investment agreements as Lipetsk SEZ tenants. In addition to the new projects, the council members looked at the two applications from the SEZ operating tenants that had requested amendments to their investment contracts.
A prominent Russian agro-industrial holding ECO-Kultura has became the first company to officially announce investing at the premises of the new SEZ stage in Elets. As a Lipetsk SEZ tenant ECO-Kultura has taken up to build a major agricultural storage and warehousing facility that is intended to win over 25% share of the relevant regional market. The $80 mln project, that is going to be deployed in 3 stages before the year of 2020, will provide jobs for 200 people. In fact, the ECO-Kultura holding is not new to the region at all. Earlier this year the company has broken ground for constructing 60 hectares of greenhouse fields in Usman – another municipal district of the region. This time, operating as an SEZ resident, ECO-Kultura will be entitled to 30 hectares of land and build over 100 000 sq.m. of logistic warehousing facilities.
Another big player of the food market – INFORUM company, the biggest country’s producer of semi-finished confectionary masses – is investing $30 mln into a factory in Lipetsk Special Economic Zone. In 2018 when the plant is launched it will be processing half of the regionally produced sugar.
Lipetsk Coffee Co LLC will invest $3.2 mln into a coffee processing plant. According to the investor, the commission is due by the end of 2019 which will allow Lipetsk Coffee Co LLC to take up to 5% of the Russian coffee market.
Kemin Industries Lipetsk LLC (US) was one of the operating SEZ tenants to apply for investment agreement amendment at the expert council meeting. The company is currently completing the construction of its plant at Lipetsk SEZ and preparing for Opening Ceremony scheduled for April 27th 2017. In addition to the already approved project that had been originally claimed, Kemin Industries are planning to increase the initially announced capacities through extending the list of products. The new plan by Kemin is to claim for as much as 50% of the national molecular additives market. The growth in production is planned solely through further localization and import substitution.
Kemin Industries is a worldwide ingredient manufacturer for animal health and human nutrition set up back in 1961. Today the company provides innovative solutions in food and beauty industries, animal nutrition, health care and pharmaceuticals.
Lamd Weston Belaya Dacha LLC was also applying for expanding approval. The company’s factory now undergoing construction in Lipetsk Special Economic Zone is expected to be launched in 2018.
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