The Legendagro Holding, owned by the Chinese Joyvio Beidahuang Agricultural Holdings (JBA), will build a soybean processing plant in Ussuriysk, Primorsky Krai. According to the press service of Russian Agricultural Bank, an agreement on cooperation between the bank and the company to create a vertically integrated agricultural holding was signed during the Eastern economic forum.
Soybean processing plant will be built in Ussuriysk, Primorsky Krai. According to the news report from the Agricultural Bank of Russia, during the Eastern Economic Forum, the bank and the company have signed a vertical integration agreement for agricultural holdings.
Each year, the company will be able to process up to 240 thousand tons of soybeans and produce up to 220 thousand tons of products, including soybean oil, lecithin, concentrate, molasses, according to a press release. As previously reported, the company will also engage in the cultivation of soy, rice and corn: within the framework of the project, it is planned to acquire 50 thousand hectares of agricultural land. By 2030, the volume of exported agricultural holding products should reach 188 thousand tons per year. In addition, the project includes the construction of a transport and logistics complex. The amount of funding from the Agricultural Bank will amount to 5.5 billion rubles.
The total project cost is estimated to 9.7 billion rubles, including about 4.5 billion rubles, which will be invested in a processing plant. Director of Legendagro Primorye (a subsidiary of Legendagro Holding) Dmitry Savenkov told Agroinvestor.
The commissioning period is scheduled for 2022-2023. “This year we will begin its design and next year we plan to begin construction,” he said. Savenkov confirmed that the products will be mainly exported to China and other countries of the Asia-Pacific region.
In this year, Legendagro planted 3.5 thousand hectares in the Primorsky Territory of rice, soy and corn. “We have signed an agreement with the port, we are installing a ship-loading machine, and from October-November we begin to ship grain and oilseeds for export,” Savenkov said. This season, the company plans to export about 100 thousand tons of corn and soybeans, he said.
Legendagro Holding was established in Vladivostok in December 2018 with a registered capital 900 million rubles.It follows from the data of kartoteka.ru. The only owner of the company is the Chinese JBA.
About the possibility of creating a Russian-Chinese agricultural holding in Primorsky Territory with an investment volume 10 billion rubles, president Vladimir Putin spoke at the beginning of June after negotiations with Chinese President Xi Jinping. JBA is a joint venture of Joyvio Group (a strategic investment platform for agribusiness development of Legend Holdings corporation, which founded Lenovo), Beidahuang Agricultural Co. (one of China’s largest agricultural companies whose land bank is 6 million hectares) and the Jiusan Grain and Oil Industry Group (a state-owned soybean processing company).