International Sugar Corporation

Back to “Press Room”

The Governor addresses the President

Governor of the Rostov Region Vasily Golubev addressed President of the Russian Federation Vladimir Putin with a request to support the investment project of construction of the first sugar plant in the Tselinsky District Rostov Region and to instruct the Government of the Russian Federation to consider providing a state guarantee for the credits obtained for the purpose of this investment project implementation.
August 22, 2013 the President encharged Deputy Chairman of the Government of the Russian Federation Arkady Dvorkovich with the task to address this matter.
In this connection the management of “International Sugar Corporation” LLC is planning on the instruction of the Russian President to ask Chairman of the Russian Federation Dmitry Medvedev to accede to the request of the Governor of the Rostov Region and to contribute to the project implementation. A chance to show the plant model with technical and economic performance specifications directly to Mr. Medvedev may be offered during operation of the XV Russian Agro-Industrial Exhibition “Golden Autumn” that will take place this year 9 to 13 October on the grounds of All-Russian Exhibition Centre in Moscow.
With regard to the fact that no new sugar plants have been built in Russia over the past 28 years while the existing ones are no way competitive against the European plants and are even ecologically destructive for the environment, the proposed project running in the course of public-private partnership with the Rostov Region Administration, meets all requirements of the approved by the Russian Government “State Program on Agricultural Development and Agricultural Products, Raw Materials and Food Markets Regulation for the years 2008-2012 and 2013-2020”, and reboot of the relations between private sector and the Government of the Russian Federation.
Plant construction is engineered using the latest European process solutions and highly sophisticated equipment. On this basis, our design engineers together with Europe’s leading specialists will work out the problem of curtailing specific energy consumption per unit of output product, quality improving and increasing production profitability.
About 200 000 tons of sugar, 57 000 tons of molasses and 57 000 tons of pellets will be produced during the period of 113 days per season of plant operation. IRR (Internal Rate of Return) will make 24% and ROIC (Return on Invested Capital) – 35%. Total plant construction expenses will make approximately 10 bln rubles.
More 500 new jobs will be created at the plant alone, when in light of steep extension of sugar beet cultivation areas, employment opportunities will increase by 1500 people, let alone crop rotation development and farm standards improvement.

The Governor addresses the President