The Russian Linen company was granted a status of the Safonovo Industrial Park resident, in the territory of which there are plans to launch the construction of a modern flax processing complex in May 2018. Agreements on locating the production facilities in the Safonovo Park were reached at the Russian Investment Forum in Sochi.
Russian Linen Ltd. is a part of the Textile division of the Promagro agro-industrial holding, which is one of the largest pork producers in the Black Earth region and meat suppliers in the Russian market.
«Acting as the Head of the subject, I attracted a large investor to the Smolensk Region, who will soon start designing and building a new flax processing plant over the past 30 years. I am glad that it will be established within our region which has always been famous for flax growing, and is now reclaiming its leading position in this industry,» told Governor of the Smolensk Region Alexey Ostrovsky at a session of the Commission for Investment Policy under the Smolensk Region Administration.
The investment project implementation is scheduled for 2018-2020 years. There are plans to process 10 thousand tons of flax straw; the production output of flax mixed yarn will amount up to 3.5 thousand tons. New production activities will be aimed at manufacturing high-quality competitive domestic products for import substitution and export. As raw materials for yarn production, there will be used cotton flax fiber.
The total investment will be about 2 billion rubles. The new production complex will allow creating over 220 new jobs and give impetus to the linen industry development in Russia. The project will require a land plot of 30 hectares. In addition to its own sources of financing, the company plans to take advantage of federal support measures, including the resources of the Industrial Development Fund and guarantee support of the SME Corporation.
Following the session of the Investment Policy Commission under the Administration of the Smolensk Region, the company was unanimously granted a resident status.