Cargill Novoanninski the local division of Cargill will launch the construction of a new oil extraction plant this September, reports Soya News Info.
According to the report the new plant is estimated to cost RUB6.4 billion (US$210mln). Construction of the plant and the commissioning of new facilities for seed processing will let the company to annually produce 280,000 tonnes of sunflower crude oil and 260,000 tonnes of sunflower meal which will be used for feed production.
The new oil-extraction factory, “the largest investment in the Volgograd agribusiness in recent years,” will localise processing, as well as adding new jobs and bring considerable tax revenue to the region, reported Governor of the region Sergei Bozhenov.
The representatives of the project also note that based n the review of the Volgograd Regional Board of Investment Cargill received the right to use state support in the form of tax exemptions and lower tax rates, as well as in the number of other forms.
The Volgograd region in Russia is the largest sunflower oil producing region with an annual level of production amounting to more than 600,000 tonnes of sunflowers, most of which are currently sent out of the region for processing.