The Krasnoyarsk Region signed an agreement on the construction of a plant for deep processing of grain in Sharypovo district

The Krasnoyarsk Region signed an agreement about implementing a project for the construction of a plant for deep processing of grain in Sharypovo district. An agreement on cooperation was concluded between the Government of the Region and the JSC Sibagro BIOTECH (a subsidiary of SIBAGRO agro-industrial holding).

Before signing the agreement, Alexander Uss, the Governor of the Region, discussed with Andrey Tyutyushev, the Chairman of the Board of JSC SIBAGRO, the issues related to the implementation of this investment project.

Construction of the plant for deep processing of grain is part of the Yenisey Siberia comprehensive investment project. At the moment, pre-design work has been completed and an assessment of socio-economic effects has been carried out jointly with SibFU.

“The signing of the agreement is a historic moment. We are launching a large project in the recent history of the region’s agricultural sector. The Krasnoyarsk Region has always been associated with a different kind of industry – it is the land of metallurgists, oil workers, and defense enterprises. At the same time, our region has outstanding success in terms of high grain production culture and yield, which last year was the highest from the Urals to the Far East. But we did not have enterprises that provided grain processing, especially at this level. This project is significant not only for the Krasnoyarsk Region, but also for the whole Russian Federation, so we will rely on organizational and financial support at the federal level,” said Alexander Uss.

In turn, Andrey Tyutyushev explained the reasons for choosing Sharypovo district to locate the future plant. “A complex of objective conditions has developed here that make this location ideal for this production. An existing grain surplus in Sharypovo district needs to be processed locally. There are also large power supply capacities in the region as well as appropriate personnel,” said the Chairman of the Board of JSC SIBAGRO.

Production is expected to start in 2023. After the plant reaches full capacity, it will process about 17% of the wheat produced in the region. The plant will process grain into gluten, lysine chloride, feed yeast, and into biodegradable plastic as well. This is a very promising area given the emerging restrictions on the consumption of conventional plastic in the world. European countries, in particular, intend to switch to the use of biodegradable polymers this year. This market is now represented by only a few companies in the USA, Europe and China. 

Implementing the project the Krasnoyarsk Region has an opportunity to exploit the niche and offer environmentally friendly products to local and international consumers. In addition, the region is moving away from selling of raw materials to deep processing and the production of high-margin products, which are in demand in the domestic and international markets.

Also, the implementation of the project will create an internal market for grain crops, the yield of which has been at a record high in recent years.  

It should be noted that the plant for deep processing of grain is not the first investment project of SIBAGRO in the region. In 2016, the Pig-breeding Complex “Krasnoyarskiy” in Bolshaya Murta reached its full capacity.