Polish company may invest in sugar factory project in Belarus

Krajowa Spolka Cukrowa S.A. from Poland can become an investor in a sugar factory project in Belarus, the chairman of the Belgospishcheprom concern Ivan Danchenko told reporters. 

“Yesterday the president of this company met with Prime Minister of Belarus Mikhail Myasnikovich. The government assured that it will create all necessary conditions and grant preferences for the investor, will fulfill all its obligations to the Polish side if they decide to build a fifth sugar plant in Belarus,” said Ivan Danchenko. According to him, Mogilev and Gomel Oblasts are also interested in the project. 

The Polish side had previously held a series of consultations and research in Mogilev Oblast. Agronomists and engineers of the Polish company visited agricultural companies in the region. They examined four prospective sites for the construction of the plant. The site in Chaussy was recognized as most promising by Polish experts.

The new plant will process 12,000 tonnes of sugar beets per day. The feedstock zones for the new plant will be farms of Mogilev and Gomel Oblasts.

“We sent the Polish side the draft investment agreement, which reflects the terms of the investment policy of Belarus,” said Ivan Danchenko. It has been agreed that by 15 August the Polish side will inform Belarusian partners of their final decision. The Polish side sent the draft investment agreement for legal review.

The project is estimated at € 350-360 million. “This will be a modern, European-level plant built with the help of foreign investments,” said Ivan Danchenko.

According to the schedule, a business plan should be prepared by spring 2012, design works will follow. The plant will be built within two years. 

According to Ivan Danchenko, the fifth sugar refinery in Belarus is necessary as this will help process sugar beets in the optimum timeframe. Mogilev Oblast is also interested in this project as there are a lot of suitable areas for cultivating sugar beets. In addition, this will help farm earn more since the government procurement contract for sugar beets is more profitable that the one for grain crops. Therefore, sugar-beet areas are the most economically prosperous regions, said Ivan Danchenko. The new company will be export-oriented.

It is planned that the new company will be part of the Belgospishcheprom concern and a co-founder of the already existing distribution network of the Belarusian Sugar Company, which operates in Russia, Ukraine, Kazakhstan, Kyrgyzstan and Georgia. However, Ivan Danchenko noted that the investor will independently determine export policies of the company.

In addition, the Polish company expressed intention to buy 2,500 tonnes of sugar from Belarus in the near future. Currently sugar is in high demand in Europe, said Ivan Danchenko.

According to www.belta.by