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Rusmolco started to implement a project with OLAM

  • Rusmolco”, one of leading manufacturers of milk in the country, increased its loan portfolio up to 3,5 billion roubles in 2012 due to loans from Rosselkhozbank. This is the highest loan limit for enterprises of the dairy branch. All the resources will go to realize the most scaled project in the Russian agriculture announced by the company in the beginning of the year!

  • Just in 2012, within a joint investment program with OLAM, RUSMOLCO will invest an unprecedented sum of money – over $ 100 000 000, that is one quarter of the amount announced in the beginning of the year as the first stage of the investment. The targets of the investment are as follows: to purchase modern agricultural equipment, to procure pedigree cattle and to start building of the first of 4 dairy complexes.

RUSMOLCO, Russian top player of the market of raw milk production, started to implement immediately the most scaled project in the Russian agriculture worth of $ 800 000 000 and began to build the first of 4 dairy complexes provided for by the project with a planned capacity of 120 tons of milk a day. Currently, there are no similar complexes in the country.

RUSMOLCO announced a launch of the most scaled program in the history of the Russian agriculture worth a total of $ 800 000 000, half an amount will be invested by the company before 2015. RUSMOLCO started to implement it immediately.

In August 2012, JSC Rosselkhozbank set a loan limit for a group of enterprises RUSMOLCO as 3,5 billion roubles. Nowadays, this is the highest loan limit for enterprises of the dairy branch. Assets got will allow to increase pace of works on projects of RUSMOLCO. Till now, the implementation of the projects was put into effect mostly by the equity of the company.

The amount of the loan, issued by Rosselkhozbank to the group of companies RUSMOLCO, makes one quarter of the amount announced on the first stage of the investment and it will be allocated as follows: 1,1 billion roubles - to purchase agricultural equipment; 0,7 billion roubles are circulating assets; 0,2 billion roubles will go to procure pedigree cattle.

Thanks to the acquisition of up-to-date agricultural equipment – 9 combines, 10 sprayers, 29 tractors John Deer, 2 combines Jaguar for feed making, 8 sowing sets Bourgault, 10 trucks KAMAZ, etc. – RUSMOLCO will put into operation additional areas of tillable lands and increase the quantity of arable lands up to 80 thousand ha in 2013, and up to 110 thousand ha in 2015. In that way, the company will meet entirely terms of the investment project with OLAM. So, RUSMOLCO will not only provide in full growing livestock with own feed but also become the largest company in Penzenskaya oblast as for the amount of arable lands.

At the moment, a loan line of 1,8 billion roubles for building of a complex and purchase of equipment for its maintenance has been reviewed by Penza subsidiary of Rosselkhozbank and is being examined by Moscow office. Opening financing is expected in the near future. Total value of the project will be 2,4 billion roubles. Currently, you can observe construction works of the complex in Nizhnelomovskiy raion, Penzenskaya oblast due to internal funds of the company which has already put into a project over 250 000 000 roubles.

Public occasion of the construction took place on August 16 with participation of the governor of Penzenskaya oblast Vassiliy Bochkarev, representatives of government bodies, bank and finance structures, partners and chief specialists of the company.

A planned capacity of a new complex in Nizhniy Lomov is 120 tons of milk a day or 46 thousand tons a year. After its startup RUSMOLCO expects to be a leading manufacturer of raw milk in the country with volume of production more than 100 thousand tons a year.

Some cardinal changes were put into a project of a new complex. Specialists of RUSMOLCO decided not to build calving pens any more but to create in the region a new enterprise (no prototypes in the country) – reproductive center. It will comprise a central calving department, a pen for growing of young stock, a pen for heifers/cows before and after calving, barns for calves of different ages. This facility will become a maternity hospital for heifers and cows from all the farms of RUSMOLCO. A withdrawal of all the processes beyond the bounds of the farms and their accumulation on one area will allow to hire the best specialists, to set the up-to-date equipment, to free room for milk cows because of replacement of heifers, ipso facto to increase volume of milk production. RUSMOLCO is going to start construction of the reproductive center in autumn 2012.

Construction of 3 more complexes within an investment agreement RUSMOLCO – OLAM is aimed in 2013. It makes 50% exactly of the entire investment program. As a result, RUSMILCO expects to increase the volume of milk production more than 300 tons a day by 2014 – 2015 and to become an absolute leader of the dairy branch in Russia and to continue investments!

August 16, 2012

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