Raisio to Build an Oat Meal Plant in Russia
The joint venture will build an oat meal plant to Burunduki, Tatarstan, to an area where i.e. major grain based production of Zolotoi Kolos is currently located.
08/06/06 Raisio plc has decided to expand its food production in the fast growing markets of Russia. For this purpose Raisio has agreed to establish a joint venture with OOO UK Zolotoi Kolos, part of Tatfond Bank group. Raisio will own 75% of the joint venture.
The joint venture will build an oat meal plant to Burunduki, Tatarstan, to an area where i.e. major grain based production of Zolotoi Kolos is currently located.
Value of the oat meal market in the major Russian cities is over EUR 100 million and annual growth approximately 10%. Today Raisio has some 6% share of these markets thanks to the Nordic-branded products exported from Finland to Russia.
By moving into local production and by increasing both the market area and product portfolio, Raisio targets to substantial growth in oat meal sales and market share. The total oat meal plant investment is estimated to approximately EUR 15 million with the completion during 2007.
The oat meal plant investment is continuation to Raisio’s strategic expansion in Russia. In 2005 the turnover of Raisio’s Russian operations was EUR 31 million, i.e. some 7 % of the group turnover. The Raisio-owned margarine plant is located in Istra, near Moscow, and the joint-venture Scandic Feed is currently planning to start the feed production in North-West Russia. In addition, Raisio has food, feed and malt exports from Finland to Russia.
