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Volgograd agribusiness joint venturee receives EBRD loan
A Russian animal feed producer is to expand its business with a US$ 20.1 million (ECU 16.1 million) loan from the European Bank for Reconstruction and Development (EBRD). Athina-Volga J.S.C. (AV), a joint-venture company based in Volgograd, will complete the construction of a sunflower oil production plant and a slaughterhouse/meat processing plant as well as modernising an animal feedmill.
Ron Freeman, First Vice President of the EBRD, said: "The EBRD's loan reflects the catalytic role the Bank can play in transforming the Russian agricultural processing industry. By helping to develop local production and to reduce dependency on imports for key staple consumer products, the Bank is helping to increase the cost effectiveness of the industry as well as improve quality and choice."
The project will cost a total of US$ 57.5 million (ECU 46.0 million) and will enable AV to develop its business, resulting in the direct employment of 500 people. The modernisation process will also introduce technology built to European standards which aims at achieving product quality, resource efficiency and waste minimisation. Indirectly, the project will also encourage commercial development at primary production, wholesale and retail levels. AV is providing the balance of the project costs. The EBRD loan carries a 7.5-year term.
AV was set up in 1991 as a joint venture between the Greek Meton-Etep Group and the Volgograd local authority to develop opportunities in the agro-industrial sector. The key areas selected for development are animal feed, meat processing and the production of sunflower oil.
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