Krasnodar Starch Plant plans second-phase construction

Krasnodar Starch Plant plans to begin construction on the second phase of its wheat deep-processing facility in the Krasnoarmeysky District, Krasnodar Region, in July 2026, the regions Ministry of Agriculture and Processing Industry has announced. The project's total investment is estimated at 45.5 billion roubles.

Under the upd ated schedule, commissioning of the plant's first and second phases is expected in June 2028. Construction of the third phase, production of starch and compound feed, is scheduled to begin in January 2028, with work due for completion by 2030.

The Ministry of Agriculture and Processing Industry clarified that the project was originally intended to be financed by up to 80% in loans at an interest rate of no more than 15% per annum. However, following changes to lending conditions, the investor was forced to begin construction using its own funds. In particular, it drew on internal resources to complete design work and begin construction on the first phase, a facility for grain reception, cleaning, drying, and storage with a capacity of 100,000 tonnes.

The company is also in talks with banks to secure loan financing. Meanwhile, preparations are under way for the start of construction on the second phase, a three-grade flour mill with a capacity of 600 tonnes per day.

The agreement to implement the project was signed at the St Petersburg International Economic Forum in 2023. The facility, with an annual production capacity of 250,000 tonnes, is se t to produce flour, native and modified starch, gluten, and compound feed. Investment in the project is estimated at 45.5 billion roubles.