Иркутск
Улан-Удэ

Благовещенск
Чита
Якутск

Биробиджан
Владивосток
Хабаровск

Магадан
Южно-Сахалинск

Анадырь
Петропавловск-
Камчатский
Москва

From turkey to hot-rolled mill products

Khabarovsky Krai shall present at the Eastern Economic Forum developing enterprises from several industries at once

Participants of the Third Eastern Economic Forum shall be able to see the presentations of projects under implementation in the spheres which are traditional strengths of Khabarovsky Krai: from the mining sector, machine building and food industry to the Russian Far East largest automobile road project, the first of its kind. To make such a unique collection of projects interesting for the large foundations, for the banks, and for the foreign partners as well, became possible due to diversified structure of the region's economy: it can find a place for development high-tech industries both in extraction and processing.

From turkey to hot-rolled mill products

In view of the next Eastern Economic Forum, its organizers made a selection of the Russian Far East investment projects to be presented to the guest of event: representatives of government and private businesses, public officials, diplomats, journalists. Anybody who wished was able to file an application, the contest jury finally selected 33 projects. The largest number of projects, as in the previous year, will be presented by Khabarovsky Krai. Five of them are now at the stage of design and survey works, the rest of them are either under construction already, or preparing to commissioning.  

Khabarovsk Eastern Bypass is one of the largest projects to be presented at the forum by the FE constituent entities: the larger projects among those presented are only Gazprom's Amur Gas Processing Plant (670 billion rubles of investments) and Nakhodka Mineral Fertilizers Plant (403 billion rubles). The necessity of construction of highway to make it possible for transit traffic to bypass the city limits, has been brewing in Khabarovsk for a long time. The project has been actively discussed from 2012, but only in 2016 the plans became concrete: the bid was won by joint venture of Gazprombank and bridge constriction holding Sibmost.

Within a 20-year perspective, the automobile border crossing point at the Russia-China border shall be established on the Bolshoi Ussuriysky Island, which will inevitably result in inflow of automobiles from the neighboring PRC territories. Next to the future highway, the sites of the territories of Advanced Social and Economic Development Khabarovsk are located, which residents have already established a number of large enterprises currently in operation, and by 2017-2018 their production output will increase even more. Eastern Bypass will make it possible to organize in a smart manner automobile transport traffic flow in two directions: on the south, to Primorye, and on the north, with an outlet to the Eastern Siberia (for more details please refer to "Investors to be connected by the highway").

Another complex project is development of industrial park Khabarovsk Building Ceramics Plant (KBCP) created on the basis of the brick making plant in the outskirts of Khabarovsk. On August 30, 2016, LLC KBCP officially obtained an industrial park status, which is confirmed by the industrial park certificate under the RF national standards. Major participants of the project are the managing company and the residents. LLC Teploeffektivny Block, LLC Dalenergogaz and LLC RBU-DV have already become the anchor residents of industrial park. The first enterprise produces concrete wall materials, the second is engaged in construction of gas compressor station for fueling the buses, the third produces concrete. A total number of 160 people are employed at the industrial park enterprises, and over 200 million rubles worth of production has been produced over the past year.

Out of 61 hectare of the total industrial park area, 49 hectares are still vacant. Its territory hosts 15 thousand square meters of vacant production and warehouse facilities, and 1 thousand square meters of vacant office premises. Out of 2 MW of the total power energy capacity, 1 MW is now idle; industrial park infrastructure is able to provide additionally up to 14 thousand cubic meters of gas per day and up to 20 cubic meters of water per hour. Managing company is preparing the documents to file an application to the Ministry for the Development of the Russian Far East (Minvostokrazvitiya) of Russia upon including the site into the limits of the territory of Advanced Social and Economic Development Khabarovsk. This will give the future residents of KBCP industrial park an opportunity to get tax and administrative benefits covering all the Russian Far East PSEDA.

The newest full-cycle enterprise is to be founded to the south of Khabarovsk, where JSC Khabarovsk Grain Processing Mill will build in two stages vertically integrated complex for production and processing of turkey meat. The complex is to include the incubator with a capacity of 1.2 million eggs a year; the plant for producing granulated compound feed; two juvenile zones and four breeding zones, for 13,700 tons of meat live weight per year. The enterprise shall also include the kill facility, cutting and storing of turkey meat with the section for deep meat processing and section for the killing wastes processing, the site for brood storage and disposal.

By 2020, the investor is planning to reach production volume of 11.3 thousand tons of ready products, which consumers shall become not only the Russian Far East citizens, but the APR countries people as well. The investor's strategic partner is Israel M.A.D. Developing Agricultural Projects, which supports the project at all its stages. The company which initiated the project, has already rented the required land plots and received technical specifications for joining the electrical and communal networks, the project works are near to be completed.



Three projects from Khabarovsky Krai selected for presentation at EEF are related to the mining industry. This is, first of all, geological prospection and pilot development of Rudny Kondoer, the Russian Far East largest deposit of platinum metals. The Kondoer deposit is being developed by Artel Starateley Amur (Association of Prospectors). The first stage of the project involves completing of the exploratory survey, the second stage is establishment of the section for pilot development of free-milling platinum dunite ores with a capacity of at least 600 thousand tons of ore per year. Cost effective and environmentally friendly platinum ore processing technologies shall be applied at the section. The project is intended for supply of placer platinum and platinum metal ingots to the end customers at the internal domestic market, mainly large banks and ferrous metal processing enterprises, as well as to the export customers, among them China, Japan and Southeast Asia countries.

Second, the region is to offer to investors the project of gold and silver ores deposit Khakandzha, which has been implemented since 2015 by LLC Khakandzhinskoye. The company delivers ore to other enterprises of the group of companies Polymetal for further processing. The explored reserves of gold and silver ore at the deposit in the Okhotsk territory are estimated at 800 thousand tons. Nowadays, 9-9.5 thousand tons of ore are produced there each month, but the production may be increased up to 13.5 thousand tons/month; this will increase the production profitability by more than twice, while the LOM will be reduced from 8 to 5 years. The investor needs 500 million rubles of additional investments to purchase equipment, additional exploratory works in the area of deposit below the 320 meter horizon and the flanks as well as for working capital replenishment.

Third, construction of mining and concentrating plant Noni is carried out in Khabarovsky Krai, which includes the open-cut ore mine and gold extracting plant for processing of 160 thousand of gold ore a year. The project's investor, LLC Noni, is a member of the group of companies Zolotaya Liga (Golden League) (VIY MANAGEMENT). The enterprise shall produce at least 640 kg of gold and 1 ton of silver a year, the ore reserves are 1.96 million tons with gold contents 4.78 g/ton and silver 20.38 g/ton. Start of extraction works at the deposit is scheduled for the first half of 2019, and commissioning of gold extracting plant, for the third quarter of 2019.

The region shall also present the project of wood-processing holding RFP Group, namely, dried timber producing plant on the basis of ASEZ Komsomolsk in Amursk. The first plant of the group to produce rotary-cut veneer, was commissioned in December 2015, the second plant was completed by the end of 2016. The plant shall produce up to 230 cubic meters of timber a year, from the moment of obtaining the status of ASEZ resident, two enterprises of RFP Group, LLC Amur Wood Industry Company and Amur Industrial Center, have invested 890 million and 120 million rubles respectively. Now the holding is searching for investor for the third stage of the project, which is construction of fuelwood pellet plant.

Finally, Khabarovsky Krai at the Third Eastern Economic Forum shall be represented by the project for production of hot steel-rolled stock for ship building and machine building industries. Investments to the plant have been initiated by LLC RM-Steel. Far East, resident of Advanced Social and Economic Development Territory Khabarovsk, which is the member of RM-Steel Group of Companies. The Company is planning to establish on a site in Rakitnoye production of up to 100 thousand tons of steel-rolled stock for ship-building industry (bulb plate, strip, corner, L-profile) and machine-building industry (special shaped profiles), including those from special and shipbuilding steel grades.

Potential consumers of RM-Steel products are present at the Russian Far East. For instance, the ship-building complex Zvezda in Primorsky Krai shall start to consume in 2021-2022, 30 thousand tons of structural stock per year. Demand of OJSC Amur Shipbuilding Plant, OJSC Eastern Wharf, OJSC Khabarovsk Shipbuilding Plant and North-Eastern Repair Center (city of Vilyuchinsk) are estimated at 2-3 thousand tons a year. Apart from that, significant part of products is planned to be exported to the APR markets, up to 67 thousand tons. Investor has already entered into agreements with Liberty House Group Company (United Kingdom) for supply of 38 thousand tons of products a year, and the work is under way for entering into agreements with the large trading APR companies.