The Nizhny Novgorod Oil and Fat Plant is ready to start construction at the end of this year.
The company is currently awaiting land allocation for this facility.
NMZhK is one of the largest vegetable oil companies in Russia (up to 6% of the total volume).
At the moment, it plans to further increase its capacity by building a complex for deep processing of oilseeds in the city of Buzuluk, Orenburg region.
It is planned that the enterprise will be able to process up to a million tons of oilseeds per year and produce 450 thousand tons of vegetable oil (125 million bottles) and 390 thousand tons of meal, as well as 200 million packages of mayonnaise and sauces.
The launch of the complex is supposed to be carried out in two stages:
2023 — the first stage
2025 — the second stage (reaching full capacity).
What difficulties might the construction of a new complex in the Orenburg region face?
According to experts, a lot of difficulties may arise during the implementation of the project.
Firstly, , there are already oil extraction complexes in the Orenburg region, so the construction of one more does not look very logical.
Secondly , the Orenburg region is far enough away from both «fields» (areas where oilseeds are grown in large quantities) and from potential buyers.
And NMZhK plans to export products to a large extent (China, Europe).
Therefore, this region is far from optimal for such a project.
Thirdly , up to 1 million tons of oilseeds are produced in the Orenburg region per year.
And this is exactly 100% of the declared capacity of the new facility.
Despite the fact that up to 60-70% of the sunflower produced in this region is already processed by local existing enterprises.
Finally, public policy today raises many questions.
This, in particular, the introduction of duties on the export of sunflower and oil, attempts to limit the maximum retail price of a bottle of oil.
Such volatility can negatively affect the profitability of the business.
NMHK plans to spend 23.4 billion rubles on the project, and without using budget funds.
Most likely, we are talking about large loans. But whether the banks will give the necessary loans, given the problems listed above, this still raises questions.
If the plant is successfully launched, NMGK plans to create over 500 jobs and annually replenish the budget by up to 2 billion rubles.
This is planned to be achieved through export sales of products in the amount of up to $ 300 million per year.
