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Construction of agroforestry enterprise

Project at-a-glance

Project highlights
Project indicators
Investment target and overview
Construction of an agroforestry enterprise for wood and industrial crops processing. Production of wood boards, building materials and vitamin supplements for animal farming.
Total required investment, USD mln
127
Investor's equity capital
2
Investor's debt capital (by sources)
75
Budgetary funds (guarantees)
50
Use of proceds
New construction
Yes
Renovation/upgrade of existing assets
No
Project design
No
Preferred investment structure
Information about co-investors (names, investment share):
Confirmed
Potential
Ratio if equity in total capital, %
Project status. Available documents (yes/no)
Business idea
Yes
Preliminary research
Yes
Project feasibility study
Yes
Market research
Yes
Project design documentation
No
Financial model
Yes
Business plan
Yes
Project launch and closure, years
2014-2017
Official materials in support of the projects (decrees of either the federal or regional government, letters from local government, provision of incentives, etc.)
Key economic indicators
IRR (internal rate if return), %
50
Payback period, years
4.4
NPV (net present value), USD mln
273
Implementation status. Information
on available facilities/equipment
Land parcels in Volsk (112 ha) and Chaykovsk (50 ha) have been prepared. Preparations for construction of an industrial part to accommodate all the core operating divisions of SARATOVAGROLES company are in progress. A set of $115 mln worth wood board manufacturing equipment has been accepted for storage in Chaykovsk with subsequent acquisition offer.
Comments

The project aims to diversify economy in the town of Volsk. It includes construction of the largest state-of-the-art enterprise designed to manufacture organic products via integrated processing of wood and flax in the Volga territory. Saratov Region is a frontier territory with large timber reserves and cultivation of industrial crops in the steppes. A shortfall of all agricultural producers is that they only take seeds of industrial crops for oil production. The rest of the plants remain in the fields. Also, to ensure supply of timber, the holding company will establish a subsidiary unit in the town of Chaykovsk, which has vast timber resources and means to transport products by river among the enterprises of the Kama-Volga area. This interface option also ensures expansion of market coverage, including product sales and export access.

Project initiators have appropriate expertise and know-how in integrated processing of all types of timber and annual industrial crops. For example, flax will be used for production of mixed feed supplements that boost immunity of farmed livestock and poultry, protecting them from numerous diseases. The project’s key areas include production of modern organic materials for construction, furniture manufacture and food processing industry.

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Project ID01/59/15

Region of Russian Federation, Area
Saratov Region
Sector
Paper & Forest Products
Parent company/shareholder
LLC SARATOVAGROLES HOLDING COMPANY
Legal address of the shareholder, website

412913, Saratov Region, Volsk, Narodnaya St. 205

Position, full name of the CEO
of the shareholder
Aleksandr Petrovich Prusak, CEO
Contact person, telephone number
Aleksandr Petrovich Prusak, 8-919-957-79-47
Last update
12.06.2015
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