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Innovative Farm Machinery to Be Produced in Kaluga SEZ

A memorandum of intentions was signed between Kaluga Region Government and KalugaSelMash OOO on January 14, 2016. The agreement provides for construction of a facility to manufacture mobile grain drying plants in Kaluga Region. The memorandum was signed by Anatoly Artamonov, Kaluga Region Governor, and Igor Rusakevich,  KalugaSelMash OOO founder.

The parties have reached a preliminary agreement to build the new production facility in Kaluga industrial special economic zone. A 2-ha land plot has been selected in Lyudinovo district. The localization under the project is to exceed 80 %. The investor plans to become an official resident  of Kaluga SEZ by September 1, 2016.   

KalugaSelMash OOO is to invest about RUR300 million in the project. 35 new jobs are to be created.  The project is to be implemented in 2016-2017.  The new production facility is to manufacture mobile grain drying plants with the production capacity of up to 570 t of grain per day. The farm machinery will be able to use various types of fuel (gas, diesel, fuel oil, etc.). The equipment will be supplied to customers from Russia and the Customs Union countries.

It was mentioned that no other company in Russia manufactured similar mobile grain drying plants. The new equipment is to reduce the grain producers’ costs, the farms will be able to get the new equipment at lower cost, grain losses will be reduced by 20 - 30%. The new production facility will manufacture products intended for import substitution and having good export potential.  

At the first stage of the project implementation the farm machinery will be produced at the existing plant in Lyudinovo district (Agregatnyi Zavod). At this stage the degree of localization will be no less than 40%. In 2017 a new plant is to be built to manufacture a wide range of farm machinery (mobile and stationary grain drying plants, grain storage systems, etc.).   

Igor Rusakevich pointed out that previously farmers had imported grain drying equipment mostly from Italy, Germany, Poland and other EU countries. He said: “Russia does not produce mobile grain drying systems in the amount sufficient to satisfy the farmers’ demand. Today our project becomes a really important one, as it allows to substitute imported farm machinery”.  

Anatoly Artamonov highly praised the new project. He said: “The farm machinery to be produced by the new plant is to reduced grain losses caused by unstable weather. Thus, the farmers will be able to produce more grain”.