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18 January 2018, 18:01

Plans to invest $10m in new confectionery factory in Slavgorod

MOGILEV, 18 January (BelTA) – A new factory to produce marmalade will be set up in Slavgorod in the next two years, Director of Krasny Pischevik Sergei Anyukhovsky told BelTA.

The investment project will be carried out by Krasny Pischevik-Slavgorod, a subsidiary of the Bobruisk-based Krasny Pischevik factor registered in Slavgorod. “We bought out an industrial site at OAO Prisozhye in Slavgorod and are planning to set up a modern facility to produce marmalade in the next two years. This confectionery product is in high demand in the domestic and foreign markets. The current capacities of the Borbuisk-based factory are not enough to meet the demand. Besides the existing marmalade line is physically and morally outdated,” Sergei Anyukhovsky said.

The decision to start the manufacture in Slavgorod rather than in Bobruisk was based on the financial reasons. Slavgorod District is included in the south-eastern region (Decree No. 235 of 8 June 2015 on the social and economic development of the south-eastern region of Mogilev Oblast) and business is entitled to significant preferences there, including in part of taxation.

Following minor renovations, the facility will be fitted with the imported technological line to produce about 450 tonnes of marmalade (about 20 titles) per month. With the new facility up and running, the Borbuisk-based factory will be able to ramp up the production of marmalade, to boost export and expand the geography of deliveries.

“Today, the company's main export items are zephyr products, which are most popular in the former Soviet Union countries. Marmalade is well-known in other countries as well. This will help us find new export destinations,” he said.

There are plans to allocate about $10 million to implement the investment project in Slavgorod. The new company will provide more than 100 jobs. The engineering and management personnel are trained at the Borbuisk-based factory. New specialists will get accommodation when they move to Slavgorod. Local workers will also be employed and will undergo training in Bobruisk.

“We also plan to launch two more projects to produce of EUR-pallets and food products. EUR-pallets will be used at the factory and sold to other food companies. The production will be launched this year. This year, we will also launch a new lineup of food products. I cannot provide any details yet (this is a commercial secret). We plan to deliver our new products to the United States. Some 20 to 30 new jobs will be set up in Slavgorod this year alone,” Sergei Anyukhovsky said.

Krasny Pischevik produces zephyr, marmalade, halva, toffee, and candies (a total of over 140 items). The company's capacities are estimated at 20,000 tonnes of confectionery products per year. The company exports its goods to 25 countries.

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