An oil extraction plant for sunflower will be built in the Rostov region

It is planned that the Svetly group of companies will spend up to 3 billion rubles on this project.

Some market participants are already worried about the emergence of a major new competitor.

There are a lot of oil extraction plants in Russia.

It is unrealistic to load all of them with work at full capacity — for this, the annual harvest of sunflower would have to be increased by 3-5 times.

And this culture is complex. According to the rules of crop rotation, you can sow sunflower in the same field no more than once every 8 years, otherwise the land will become unusable for a long time.

This makes the competition between fat and oil complexes very strong.

Although the Svetlyi Group of Companies itself cultivates up to 184 thousand hectares of Rostov land, it is obvious that it will not have enough of its own raw materials, and it will buy it from other producers, “taking away bread” from already existing factories.

What will the new oil extraction plant be like?

 

It is planned that earthworks will begin this October, and the first batch of oil will be produced in 2023.

The group of companies is going to attract its own and borrowed funds in approximately equal shares to implement the project. This money will, in particular, be used to purchase Italian equipment.

The stake is made on making everything as modern, automated and efficient as possible.

The number of employees at the plant is no more than 80 people (although usually at such facilities — 250 each).

Products are mainly planned to be exported, mostly to China.

There is also a modern approach to waste: husk will be burned to generate electricity, cake will be processed into compound feed for cows: GK plans to build a cowshed not far from the plant.

Will the new oil plant on sunflower be «pulled out»?

 

The payback period of the facility, according to forecasts of the management of the Civil Code, should be 6-10 years. Up to 500 tons of sunflower will be processed per day.

At the same time, the head of the Oil and Fat Union of Russia, Mikhail Maltsev, doubts that Svetly does not plan to use the capacity of the new plant for something else besides sunflower.

“The oil and fat business is not that simple, if we talk about the emergence of new players on the market.

It is very competitive, and, I think, it will be difficult for an enterprise oriented towards export or even domestic consumption, but which does not have marginality reserves in the second or third redistribution, it will be difficult to enter the market. It is not a fact that such projects will be successful, ”he said.

So today there is a reason to worry, perhaps even for those enterprises that process completely different crops.