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- Investment Projects
Tai Yuan, the residential company of the Free Port of Vladivostok, carries out the project for the creation of agroindustrial cluster in the Primorye Territory.
The agroindustrial cluster is a Russia-Chinese joint project for the creation of production park, combining livestock breeding and crop farming, greenhouse complex and infrastructure, as well as agricultural tourism development.
The project investors are Tai Yuan (China, Jilin province) and PrimRing Fund of regional development (Sumatori Group, Russia, Primorye, Artem). The company received the resident status in July 2016.
The agroindustrial cluster will be formed at the premises of the Shkotovsky area, Mnogoudobnoye settlement, of the Primorye territory. The overall complex area is projected at 7 k ha, including 6.8 k ha of agricultural land. Potatoes, grain crops, and leguminous crops will be cultivated here. Five functional zones will be located here: the headquarters, the farm plot, as well as industrial processing, logistic and tourism zones.
“Agroindustrial complex is one of the critical branches of Primorye economy. Development of the agroindustrial cluster, 6bn RUB worth, will ensure new employment opportunities and give the momentum to import substitution in the region. It is important to provide the local residents with fresh and eco-friendly, high-quality products all year round. That is the goal of the project. We intend to produce branded products marked with “produced in Primorye” label,” – Vitaliy Verkeyenko, President of the PrimRing Fund of regional development.
The project will be carried out in three stages before 2024. At present, infrastructure building activities are underway, for further development of the greenhouse and orchard enterprises, and timber fungus cultivation base. The investor also intends to commission water and power supply, road and telecommunication infrastructure by 2017, to develop the initial image of the production cluster. The amount of capital investment in the first project phase will total 230m RUB, with 40 employment opportunities to be created. At present there are 11 people employed.
The next stage will be carried out in 2018 – 2020. As informed by the company, the period will become the project development phase. The cultivated land will account for 50 k ha, with grain and vegetable cultivation, and livestock breeding base to be developed. In addition, the stage will feature the creation of facility for agriculture storage, logistics, import, and export.
The final project stage will take place in 2021 – 2024 . The cultivated land will reach 70 k ha. At this stage, the company will complete the construction of high-standard production park with integrated modern technologies.
“Russian Far East offers competitive investment conditions, and we see the demand for them from Russian and international business. This country is interested in attracting high-quality investors, ready to build new modern facilities, create new employment opportunities, pay taxes, and adhere to the Russian legislation”, – Alexander Galushka, Minister for the Development of the Russian Far East.
“The cooperation potential with foreign investors is sufficiently high. Foreign companies invest in the promising niches and gain good benefits in the Far East,” – as noted by CEO of Development Corporation of the Far East Denis Tikhonov.
As a reminder, the federal law on the Free Port of Vladivostok became valid on 12 October 2015. The free port mode is effective in the Chukotka Autonomous District, the Sakhalin region, and the Primorye, Kamchatka, and Khabarovsk territories.
At present, there are 10 investment projects accomplished in the Free Port of Vladivostok. Currently 26 facilities are at the shell and core stage, with 21 facilities at the engineering stage. 45 enterprises are expected to be launched in the FPV in 2017.
It should be noted that since the start of the federal law on the Free Port of Vladivostok, 422 FPV resident applications were filed to the Development Corporation of the Far East with overall investment as of 388bn RUB and 38 k employment opportunities. A total of 258 companies with overall investment as of 318 bn RUB became residents, with approximately 29 k employment opportunities to be created.
Source: Ministry for the Development of the Russian Far East