RDIF and Vietnamese TH group launch construction of dairy complex in Kaluga region, Russia
Staff Writer |
The ground-breaking ceremony was held to start the construction of integrated dairy complex in Kaluga region.
Article continues below
Representatives of the Russian Direct Investment Fund (RDIF), the sovereign wealth fund of the Russian Federation, and TH Group, the largest Vietnamese agricultural conglomerate, took part in the ground-breaking ceremony to begin construction of integrated dairy complex in Kaluga region.
The event was also attended by Nguyen Phu Chong, the Secretary General of the Central Committee of the Communist Party of Vietnam, Dmitry Patrushev, the Russian Minister of Agriculture, Anatoly Artamonov, the Governor of the Kaluga Region, Thai Huong, Founder of TH Group, and representatives of RDIF.
The investment totals $633 million, which is a largest single investment by a Vietnamese company in Russian agriculture. The funds will be spent on the construction of integrated facilities for the production of dairy products in Moscow and Kaluga regions. The complex will have a capacity of more than 300,000 tons of milk per year.
RDIF and TH Group plan to announce the completion of a deal to build integrated dairy complex in both Moscow and Kaluga regions by the end of 2018.
The launch of the first farm for the production of raw milk in the Volokolamsky district of Moscow region took place in Q1 2018. The launch of the remaining four dairy farms in Moscow and Kaluga regions is scheduled for 2019 and 2020. The facilities for the production of dairy products and a proprietary distribution network are expected to be launched in 2020. By 2025, the company plans to reach full production capacity and take a leading position in Russia in terms of the volume of raw milk production.
The project will utilize end-to-end milk processing technology, involving a complete production chain from growing fodder and milking herd to the production of raw milk and its processing into a wide range of final dairy products. The project provides innovative solutions for increasing the productivity of milking herd, as well as modern technological solutions, including automatic feeding and milking systems.
RDIF and TH Group are also considering construction of dairy plants in other regions of Russia as part of the partnership, including regions in the far east of the country. ■