PAVA Seeks International Investors In Advanced Wheat Processing

Barnaul, Russia (PressExposure) June 16, 2009 -- Grain processor PAVA, headquartered in Russia, the Altay Territory, is diversifying its business areas, adding deep wheat grain processing. The company announced partial reconstruction and expansion of production facilities in Rebrikha, where a series of new plants will be installed.

«PAVA is a prominent player on the Russian milling market, and the most rapidly developing exporter of the industry. We link our future development with innovative deep wheat processing, and have already seen a confirmation of the market potential", says Galina Balaenkova, PAVA Head of IR and International Business Development. "In a relatively short time we were able to sign off-take contracts with large Russian and European companies for the total future output".

PAVA will produce syrups and starch, vital wheat gluten, alcohols, compound animal feed and other valuable ingredients extracted from the wheat kernel. The underlying idea of the project is to create high synergies in the technological process, where production stages tightly follow each other as by-products of one operation are utilized as feedstock for another. The project is estimated at around 200 mln. euro and is integrated in the company structure as an SPV Grainvest.

"Currently we are conducting private placement of RAD - PAVA daughter company, developing its own land bank and independent agricultural production. One of the next stages will be attracting investment to deep processing business through selling shares of Grainvest, or GlobalAgro holding, consolidating these two enterprises", continues Ms Balaenkova. "There is growing interest in the agricultural project from international investors, and we believe that Grainvest has very promising advantages for today's food industry".

PAVA new business model is unique for Russia, and the new company projects are actively supported by the Government - in particular, in the shape of tax incentives and loan subsidies. Recently, the Ministry of Regional Development approved the Grainvest project financing to the amount of 40% of the total cost.


PAVA is one of the major grain processors in Russia. The company represents a 3% share of the national flour market. According to 2007 results, it was given the status 'Leading Exporter of the Industry' by Russian Ministry of Economic Development. Recently PAVA has developed a new strategy - creation of a vertically integrated agroindustrial holding. It is based on implementation of 2 projects: RAD (agricultural business operations) and Grainvest (deep grain processing), consolidated under GlobalAgro structure.

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Press Release Submitted On: June 16, 2009 at 5:16 am
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