International Sugar Corporation

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"HERE AND NOW" - WHAT STAGE AT THE FIRST DON SUGAR FACTORY? Press source: ISC JSC Press-center

The Investor has been trying to establish sugar production in one of the most favorable regions for sugar beet cultivation for the last 5 years, and this year the agricultural producers will again take their products to the neighboring regions for hundreds of kilometers

The project was announced in 2012 when signing an agreement on cooperation between the Government of the Rostov region and the Initiator of the project ISC CJSC at the International Investment Forum "Sochi 2012".

The investment project began its journey and maintained a steady pace. One by one, the issues with communications (electricity, water supply and sewerage, access roads, railway, communications, gas supply, etc.) leading to the land plots (229 hectares), which the Investor acquired into ownership, were solved one by one on schedule.

The investor originally intended to create a high-tech plant. Using the latest technologies, the Investor intends to achieve high quality of the products, competitive prices for the plant's products and the minimum possible impact of production on the environment. For which they were attracted by highly qualified foreign specialists, Belgians and French, who have many years of experience in the field of industrial construction of sugar refineries in other countries, which have fully developed the technological part of the project.

The Investor spent two years on the project more than 200 million rubles from his own sources and intended to continue investing in the sugar plant project at the expense of a parallel business project.

The beginning of difficulties with the implementation of the Investor's projects fell on the Ruble devaluation period in 2014.

The necessary equipment, incorporated in the project of the sugar factory, was planned for purchase abroad. External events significantly influenced the cost of equipment, and set before the Investor new tasks of finding optimal solutions and replacing some equipment with domestic ones, for which already qualified Russian technological specialists of the sugar industry were involved, which in turn led to the postponement of the start of construction.

Parallel to this, the search for third-party investors began. The project had to be fully funded by one of the Western investment funds, with whom cooperation lasted several months, and at the stage of signing a quadrilateral agreement on the financing of the project with the participation of the Rostov authorities and the leading bank of Russia, due to the sudden disagreements between the Investor and the Fund, it has to be dissolved.

The Investor continued to search for reliable partners and during this time, through additional investment of funds, the shareholders completed the design work, having obtained a positive approval of the examination and the building permit in August 2017, and resolved the issues with the sale of all the products of the future sugar plant.

Everything that happens is for the better. It is noteworthy that investors are coming to the project who are not afraid of novelty and are ready to work on an innovative project conceived, of course, for profit making by investors, but which has a number of additional missions that bring positive changes to the local agricultural producer and residents of the municipal district.

Mission of the sugar factory in the Tselinsky district. This is an opportunity to recycle local beet raw materials directly in the construction zone of the plant (the gross harvest of sugar beet in the Tselinsky district in 2016 exceeded 150 thousand tons, with a yield of 600 quintals per hectare, Source: https://www.agroxxi.ru/zhurnal- agromir-xxi / stati-rastenievodstvo / v-rastenievodstve-mezhsezone.html), several hundred additional jobs and the construction of a new residential complex for specialists and workers of the sugar factory.

The authorities have repeatedly noted that for the Rostov region the sugar factory is not just a cherished dream, but also great opportunities, including for the implementation of infrastructure projects vital for the Tselinsky district.

"HERE AND NOW" - WHAT STAGE AT THE FIRST DON SUGAR  FACTORY?