Korben International Industrial & Financial Corporation, Inc.

Projects which are being implemented by the Corporation

Construction of a large wholesale food processing complex «FU» on the territory of the South-East Administrative District of Moscow at the address : Industrial area «Kuryanovo», Proektiruemy Proezd 4294.

Location of the Project

General plan

Lay-out of industrial space

Wholesale industrial foodprocessing complex, Industrial zone "Kurjanovo", proezd 4294


 








General investor, ordering-party and developer
Corporation "Korben International Industrial & Financial Corporation, Inc."
CEO: Korotkevich Petr Leonidovich, President – Chairman of the Board of Directors.

The address of the corporation in the USA: 1100, Connecticut Ave., NW, Suite 850, Washington, DC 20036,
Phone: (202) 588-01-27, (202) 588-03-05,
Fax: (202) 588-0128.
E-mail: info@uskorben-inc.com,
Web: http:// www.korben-inc.com.

Representation office of the Corporation in Moscow, address:127473, Moscow, 2nd Schemilovskiy pereulok, 4.
Phones: (495)660-75-82, (495)660-75-83, (495)660-75-85.
Fax: (495)660-75-84.
E-mail: info@korben-inc.com; mail@korben-inc.com.
Web: http:// www.korben-inc.com.

General planning organization:
Planning and design office “Korben International”.
Director - Chief engineer of the planning and design office: Kofanov A.P.
Address:127473, Moscow, 2nd Schemilovskiy pereulok, 4.
Phones: (495)660-75-82, (495)660-75-83, (495)660-75-85
Fax: (495)660-75-84.
E-mail: info@korben-inc.com; mail@korben-inc.com.
Web: http://www.korben-inc.com.

Technical customer:
Capital construction department of the representation office of "Korben International Corporation".
1st Deputy Head of the Representation office, Director of the department: Alexander Alexandrovich Krasilnikov
Address: 127473, Moscow, 2nd Schemilovskiy pereulok, 4.
Phones: (495)660-75-82, (495)660-75-83, (495)660-75-85.
Fax: (495)660-75-84.

General contractor:
CJSC “Capstroi Korben International”.
General director: Smirnov Y.D.

 

Brief informational summary of the development of the Large
wholesale industrial food-processing complex “FU”

For the purpose of complementation the state economic policy in the area of the security of the food supply of the Russian Federation, approved by the Decree of the President of the Russian Federation Dmitriy A. Medvedev of 01.02.2010 “On the approval of the Doctrine of the food security”, directed to the safe supply the population of the country with food products.
The questions of the security of the food supply are underlined as priority according to the strategy of the national security of the Russian Federation till 2020, approved by the Decree of the President of the Russian Federation of 12.05.2009 537, the Conception of the long term social-economic development of the Russian Federation for the period till 2020, approved by the Decree of the Government of the Russian Federation of 17.11.2008 #1662-r.
In compliance with the policy of the State program of development of agriculture and regulation of the markets of agricultural products, raw materials and food stuffs for 2008-2012, set in the above-mentioned documents, which is approved by the Government of the Russian Federation #446 of 14.07.2007 “On the State program of development of agriculture and regulation of the markets of agricultural products, raw materials and food stuffs for 2008-2012”; the Law of the city of Moscow of 12.06.2006 #39 “On the food safety of the city of Moscow”; Decrees of the Government of Moscow of 10.02.2004 #59-PP “On the main directions of strengthening the food safety of the city of Moscow for the year 2004 and further perspective”, of 11.08.2009 #774 “On practice of  joint work of the Government of Moscow and the Department of Agriculture of the Russian Federation according to the development of the native agricultural complex”, of 09.03.1999 #172 “ On Assignment to the International Industrial-Financial corporation “Korben International” for its Moscow affiliate “Food Processing and Wholesale United Company” of a land site at the industrial zone “Kuryanovo” (South-East Administrative okrug) at the address Moscow, i/z Kuryanovo, pr.pr.4294., “Korben International Industrial & Financial Corporation, Inc.”(hereinafter referred to as the Corporation) carries out the implementation of construction and further operation of the large wholesale food-processing complex “FU” (the first stage) (hereinafter referred to as the Complex), directed to the output of import-substituting ecologically pure products from meat of beef and pork that satisfy the requirements of the United States and Europe and are reasonable for the middle class of Russians.
The Corporation is general investor, orderer, developer, project’s owner and operator.
The construction is carried out on the territory of the land site with the area of 117 430 square meters and envisages the construction, equipment and putting into operation of an enterprise on the production of meat products with the total area of 53 545 square meters, consisting of:
- two cold storages  5 000 tons each;
- two production facilities, equipped by modern technological lines and equipment for processing, packaging, warehousing and long-term storage of raw materials and ready products from beef and pork;
- administrative building, including among other a food stuffs trade center, distribution center and cash settlement center;
- auxiliary engineering production building;
- sewage disposal works and thermoelectric power station;
- transportation department, consisting of 30 refrigerator trucks with 2,5 tons capacity and twenty refrigerator trailers , 20 tons each.
The design capacity of the creating enterprise is 320 tons per day with three shifts, which will ensure annual output of the production of 80 000 tons.
The commencement of the construction of the first stage is III quarter of 2004. The date of the completion of the construction is the end of 2010. Putting the enterprise into operation – the first half year of 2011.

The Complex under construction is the first major project of this kind in the Russian Federation, and namely in the city of Moscow, which is being built by the American Corporation “Korben International Industrial & Financial Corporation, Inc.” in the field of production and wholesale trade of food stuffs manufactured by the USA in Russia, where the share of the USA in the cost of the product and services planned amounts to 100%.
As of to-day, the Corporation has completed pre-project and project works, it has carried out coordination with structural units of the Mayor’s office and the Government of the city of Moscow in accordance with requirements of the Town Planning Code of the RF (in edition of the Federal laws of 22.07.2005 N 117-FZ, of 31.12.2005 N 199-FZ, f 31.12.2005 N 210-FZ) and the Laws of the city of Moscow #13 f 03.03.2004 “On The Basics Of Town Planning In the City Of Moscow”, #50 f 09.07.2003, “On The Order Of Preparation And Obtaining Permissions For The Construction, Reconstruction Of Town Planning Objects In The City Of Moscow”, #41 f 11.06.2003 “On Provision Of Favorable Environment For Life Activity During Construction, Reconstruction, Complex Capital Repairs Of Town Planning Objects In the City Of Moscow”.
The following documents have been worked out, coordinated, approved and entered into force:

  1. Resolution of the Moscow Government dated 09.03.1999 # 1 72;
  2. Initial permitting documentation (IRD) dated 29.12.1999, # 074-31/2039;
  3. Long-term Land Plot Lease Agreement dated 31.10.2000 # M-04-017235;
  4. Long-term Land Plot Lease Agreement dated 31.10.2000 # M-04-01 7237;
  5. Technical Report of the LLC “Ladisten” about engineering and geodesic investigation and fixing of borders of Land Plot Lease with determination of the Object’s area of Korben International Industrial & Financial Corporation, Inc., in the industrial zone "Kurianovo" (Moscow, South-Eastern Administrative Area, passage 4294), the area - 173976,4 sq. m.;
  6.  Technical Report of the LLC “Ladisten” about engineering and geodesic investigation and fixing of borders of Land Plot Lease with determination of the Object’s area of Korben International Industrial & Financial Corporation, Inc., in the industrial zone "Kurianovo" (Moscow, South-Eastern Administrative Area, passage 4294), the area - 11124,0 sq. m.;
  7. Cadastre Certificate of the Moscow Government, Committee for Architecture and City Planning of the city of Moscow dated 18.05.2001, # 77-GGK/l 00-240/01-1060;
  8. Target for working out of the project documentation for an architectural & construction industrial object - the wholesale food complex, in the industrial zone "Kurianovo" (Moscow, South-Eastern Administrative Area, passage 4294);
  9. Extract from the minutes of the Regulations of project considerations by Chief Architect of Moscow, dated 06.06.2003  #11;
  10. Extract from the minutes of the Regulations of project considerations by Chief Architect of Moscow, dated 12.09.2003 #23;
  11. Conclusion of the State Ecological Expertise dated 28.05.2001 of the State Environmental Protection Committee of the city of Moscow; Order "On Approval of Results of the State Environmental Expertise of Materials of the "Project of the City Planning Plan for the Development of South Eastern Administrative County Territory of the city of Moscow" dated 13.06.2001, # 141;
  12. Scheme of the landscape, construction and functional zoning, Appendices # 1,2,3;
  13. Conclusion of the Department of Nature Management and Environmental Protection for the city of Moscow, regarding the dendrological part of the project, dated 16.09.2003, # 96.7818;
  14.  Conclusion of the Moscow Government, Department of Nature Management and Environmental Protection of the city of Moscow on materials of the wholesale food complex construction project, industrial zone "Kuryanovo", dated 19.1 1.2003 # 5-29-1032./3;
  15. Conclusion of the Center of Gossanepidnadzor in South Eastern Administrative County of the city of Moscow for the construction general plan of the foodstuff complex, industrial zone "Kuryanovo", dated 15.09.2003 # 5/734 of the Ministry of Health Care of the  Russian Federation;
  16. Conclusion of UZhKKhiB MGUP "Promotkhody" for the wholesale food complex project at: Moscow, industrial zone "Kuryanovo", dated 22.09.2003, # 3/4-44;
  17. Approval of Moscow Oksky Pool Water Administration "MOBVU" of the allocation of the land plot dated 09.04.2003 # 1-283 and dated 29.09.2003 # 1-657;
  18. Technical conditions of MGUP "Mosvodokanal" for water supply and sewerage drainage dated 03.12.2002 # 21 -2950/2-(0)-l;
  19. Technical conditions of MGUP "Mosvodokanal" for water supply and sewerage drainage dated 11.02.2003 # 21 -293/3-(0)-l;
  20.  Letter of GUP “Mosteploenergo” dated 28.10.2002 #03-17/483. Technical conditions for connection to heater nets #8/2002;
  21. Technical conditions for connection to electric net of «Mosenergo» dated 03.12.2002. #000386; Letters of “Moscow cable net” (the brunch of «Mosenergo») dated 30.12.2002 #-418-17-15/22894 and dated 14.04.2003  #-418-17-15/5837; 
  22. Technical conditions, Permit for temporary connection to electric net of “Moscow cable net” (the brunch of «Mosenergo») dated 02.02.2004;
  23. Conclusion of the Moscow State Non-Departmental Expertise dated 16.10.2003 # 105- P5/03MGE for the project of construction of the wholesale food complex;
  24. Certificate of the Moscow Government, Committee for Architecture and City Planning of the city of Moscow, on approval of the Architectural & City Planning Solution # 46-5-03, facilities code # 074-31/2039-1999.Approved by the First Deputy Mayor of Moscow Mr.V.I.Resin on 18.12.2003;
  25. Order of the President & Chairman of the Board of Korben International Industrial & Financial Corporation, Inc. dated 25.11.2003 # 26, On the Approval of the development of the wholesale food complex project at: Moscow, industrial zone "Kuryanovo", proezd 4294;
  26. Notice of investment intentions of the client related to the design and construction of facilities in the city of Moscow in 2004;
  27. State Sanitary & Epidemiological Service of the Russian Federation for South Eastern Administrative County of the city of Moscow, Sanitary & Epidemiological Conclusion # 5/131 dated 11.03.2004;
  28. State Sanitary & Epidemiological Service of the Russian Federation for South Eastern Administrative County of the city of Moscow, Act of the Sanitary & Epidemiological examination # 5/131 dated 11.03.2004;
  29. Sanitary Direction to Conclusion of the Center ”Gossanepidnadzor, Moscow dated 11.03.2004 #5/131;
  30. Permit for wood cutting of the Moscow Government, Department of Nature Management and Environmental Protection dated 09.09.2004 #96-48/1314;
  31. General Plan of the 1 turn of construction of the wholesale food complex, in the industrial zone "Kuryanovo" (Moscow, South-Eastern Administrative Area, passage 4294);
  32. General Schedule of construction of the wholesale food complex, industrial zone "Kuryanovo", industrial zone passage 4294, South Eastern Administrative County of the city of Moscow, dated 21.07.2004;
  33. Conclusion of Metrogiprotrans dated 14.04.2004 # 3016-01-32/713;
  34. Title of the object construction;
  35. Geological preparatory basis dated 22.08.2005 under order # 3/4250-05 for the fulfillment of the work in the territory with the total area of 30 hectares;
  36. Acts dated 01.08.2005 under order # 43606 and # 43607 for the landing of buildings, division and carry-over of axes to the environment for all the buildings of the complex;
  37. Construction General Plan for the main facilities, scales 1:500;
  38. Construction General Plan for the garage in the industrial zone of Kurianovo, pr. 4294, scale 1:500;
  39. Combined plan of communications for the geological preparatory basis of the major wholesale foodstuff complex in the industrial zone of Kurianovo, scale 1:500;
  40. Situation Plan of the industrial zone of Kurianovo, scale 1:2000;
  41. General Plan # 001-01-GP dated 12.07.2005 made for two sites, agreed with Mosgorekspertiza # 5-5/03 for site # 1, dated 15.08.2005, and for site # 2 dated 25.08.2005;
  42. Project for the carry-over of the sewerage pipeline made on 30.11.2005, agreed with GUP "Mosvodokanal" dated 25.11.2005 # KK9-2K, dated 06.12.2005, # 5286 with MKS, dated 13.12.2005 # 7484 with OPS Mosgorgeotrest;
  43. Order of FGUP “Giprorubchoz” dated 15.04.2004  #32;
  44. Letter of FGUP “Giprorubchoz” dated 31.05.2005. #10-3257/62;
  45. Permit # 19869 dated 18.06.2004 of the Inspectorate of the State Architectural & Construction Supervision of the city of Moscow for the production of construction & assembly works at the construction site at Projected Passage # 4294, industrial zone "Kuryanovo";
  46. Permit # 19869/1 dated 06.10.2004 of the Inspectorate of the State Architectural & Construction Supervision of the city of Moscow for the production of construction & assembly works at the construction site at Projected Passage # 4294, industrial zone "Kuryanovo";
  47. Preparatory Work Acceptance Act dated 29.12.2004;
  48. Permit of Moskomarkhitektura dated 22.03.2005 # R-0288/08 for the construction, reconstruction of the city construction facilities in Moscow;
  49. Concordance of projects for the production works by Moscow region Department of technological and ecological control of the State Ecological technological and atomic control dated 19.07.2006 #4883;
  50.  Schedule, agreed with OATI of Moscow, dated 28.09.2006 for moving of sewerage system pipe-line;
  51. Common Schedule, agreed with OATI of Moscow, dated 26.06.2006 for the production of preparatory, land, and construction works;
  52. Order dated 23.07.2004 # 04040234 for the production of preparatory, land, and construction works till 01.09.2004;
  53. Order dated 31.08.2004 # 04040234/1 for the production of preparatory, land, and construction works till 01.11.2004;
  54. Order dated 26.10.2004 # 04040234/2 for the production of preparatory, land, and construction works till 31.12.2004;
  55. Order dated 30.12.2004 # 04040234/3 for the production of preparatory, land, and construction works till 31.03.2005;
  56. Order dated 30.03.2005 # 04040234/4 for the production of preparatory, land, and construction operations valid till 30.06.2005;
  57. Order dated 27.06.2005 # 04040234/5 for the production of preparatory, land, and construction operations valid till 30.09.2005;
  58. Order dated 30.09.2005 # 04040234/6 for the production of preparatory, land, and construction operations valid till 31.12.2005;
  59. The Resolution of the Government of Moscow dated 13.09.2005 #694-PP “On the introduction of changes to the Resolution of the Government of Moscow dated March 9, 1999 #172”;
  60. Order dated 29.12.2005 # 04040234/7 without the right of the production of works till 30.03.2006;
  61. Order # 04040234/8 dated 11.04.2006 for the production of land and construction operations. The order is valid till 30.06.2006;
  62. Order # 04040234/9 dated 12.07.2006 for the production of land and construction operations. The order is valid till 30.07.2007;
  63. Order # 04040234/10/1 dated 29.09.2006 for the production of land and construction operations. The order is valid till 30.07.2007;
  64. Order # 04040234/10/2 dated 13.03.2006 for the production of land and construction operations. The order is valid till 30.07.2007;
  65. Notification about the beginning of the object construction, reconstruction, capital repairs dated19.02.2007;
  66. Order # 04040234/14/2 dated 06.11.2009 for the production of land and construction operations. The order is valid till 30.04.2010;
  67. Adjusted general schedule of the design and construction works;
  68. Permission for the construction dated 21.02.2008 #RU77178000-001828, issued by the State Construction Supervisory Committee of the city of Moscow, valid till 31.12.2011.

For the development of design documentation, schemes, realization of calculations of steadiness and reliability of constructions, and also development of technological part of complex with technical terms of warranty period of exploitation of permanent structures (99 years) specialized design and construction office was formed in “Korben International Industrial & Financial Corporation, Inc.” consisting of leading experts from the Central Scientific Research and Design Institute for the design of atomic enterprises of the Ministry of the Atomic Energy of Russia.
The work on the design and technical equipment of the Complex on the contract basis involves industrial companies from the USA, Japan and Western Europe – the leaders of the world technical progress in this field such as Maekava Maicom and Yanagia (Japan), Baader and Grasso Refrigeration (Germany), Kabinplan (Denmark).
The object under construction does not have any analogues in Russia, and has a category of enterprises producing a high quality ecologically clean products with a long shelf life expiration. These are such manufacturers as founded in 1891 concern “Hormel Foods”, international concern “Smithfield”, which have large enterprises in the USA, France, Poland, Rumania, UK, Japan, Spain.

Description of the large wholesale industrial food complex “FU”

 

The object of the investment project under review is to build and operate a large wholesale industrial food processing complex, which is a complex of facilities for processing products from beef and pork.
The Complex under construction is one of the largest in Europe among enterprises, producing foodstuffs, it will be furnished with state of the art imported production and technological equipment, providing for processing of the raw materials, production of the foodstuffs, packaging, warehousing and long-term storage of competitive import substituting ready made products made of meat, poultry and fish, it will also make it possible to produce a wide assortment of foodstuffs with a possibility of its necessary updating with regard to the requirements of the consumer market.
Special attention is paid to the production of semi-processed foodstuffs, of deep-frozen products and fast food to be used in home cooking. The variety of products of the complex in terms of their prices will be oriented towards wide layers of population of Moscow, Moscow region and the Central region in general.

 

Description of Technical Design for the Large Wholesale Industrial Food Processing Complex “FU”

The design for the large wholesale industrial food processing complex has been developed based on:

  • Moscow Government Decree of March 9, 1999, # 172;
  • Initial authorization documentation # 074-31/2039 of 29.12.1999;
  • Design assignment approved 23.07.2002 by President of Korben International Academician P.L. Korotkevich,
  • Findings of engineering and geological surveys performed by OOO "InGeoProyect" between August and September, 2002;
  • Technical conditions for engineering support;
  • Current construction regulations, rules, guidelines, and standards for design work.

Master Plan layout for the complex has been performed with a view of arriving at an optimal arrangement for the whole of the building and installation complex based on the production process scheme and principles of closest grouping of main and auxiliary processes and separation of transport and manpower flows.
Site # 1 is to accommodate all the main and auxiliary production buildings: meat-processing facility, administration and on-site facilities building, two cold storages, an auxiliary facilities unit, RTP [maintenance and technical support unit] and process waste treating and storm and snow sewage-treating facilities.
Site #2 will accommodate garage for motor vehicles.
Drainage system of the complex provides for discharge into a closed network of storm sewage, with processing of surface water at the treating facilities to ensure permissible concentrations. The design provides for planting of greenery wherever possible on the premises by lawning and planting trees and shrubbery.
The governing factors in master plan layout and landscaping are the presence of existing right-of-ways and municipal infrastructure. Design scenarios for transport support of the large wholesale industrial food processing complex have been elaborated based on analysis of the current situation with existing and planned transport links, taking into account the guidelines for the city development plan, in accordance with the functions of the complex, its rated capacity based on computing the incoming truck flow.

Buildings and premises

 

The design provides for the construction of the first stage, on two isolated sites

  • Two meat processing facilities
  • Three cold storages with a total capacity of 10 000 tons,
  • A block of auxiliary facilities,
  • Administrative and on-site facilities buildings,
  • A garage for 50 vehicles, 
  • Purification facilities for industrial wastes, storm and rain waters.

The meat-processing production includes the following main and auxiliary premises and units:

  • defrosting division;
  • meat accumulation , defrosting and dressing
  • raw material;
  • convenience food production section;
  • meat salting room;
  • non-frozen convenience food packaging division;
  • frozen convenience food packaging division;
  • stuffing division;
  • sausage setting room;
  • cooking division;
  • baking division;
  • sausage curing division;
  • cooked sausage cooling and storing;
  • casing preparation division;
  • packing materials storage room;
  • implement washing division;
  • auxiliary packing materials storeroom;
  • foodstuff warehouse;
  • Storage rooms for finished products.

To store incoming raw material, two refrigerator units (cold storage) with a 5000-ton capacity for simultaneous storage each have been incorporated in the design.
                                                                    
 Meat-processing unit join the refrigerator units on one side, with the administration and on-site facilities unit joining them on the other side.
The refrigerator units joining the processing facilities provide for maximum space efficiency and reduction in transportation links.
The administration and on-site facilities unit, besides housing administration and on-site facilities premises, utilities, sanitary and plumbing facilities, accommodate laboratories, calculating & cash centre, tasting rooms, and a canteen seating 100 people.
To service the large wholesale industrial food processing complex “FU” the project envisages construction of a transportation (shipping) department, consisting of 20 refrigerator-trucks (20 tons), 30 refrigerator trucks of 2,5 tons. All the incoming and outgoing shipments are by road. Shipments of frozen raw stuff are to be made by refrigerated 20-ton vehicles. Auxiliary materials are to arrive in 5-ton trucks. Outgoing shipments are delivered by low payload vans with a 2,0 - 2,5 tons capacity. Shipping will be done around the clock, with the bulk of deliveries falling on daylight time. Transportation service for the complex personnel is being arranged in conjunction with the planned development of public transport in the residential areas of Pechatniki and Kuryanovo. Internal transportation as well as handling operations at the refrigerator units and storage facilities, according to the design, are to be supported by battery-run electric loaders.
Implementation of projects of “Korben International” on the development on the territory of the Russian Federation of large wholesale industrial food processing complexes equipped with state of the art facilities, with modern distribution system and intended for the manufacturing of import-substituting competitive products, which are currently being imported to Russia, and introduction of managerial experience oriented at the economic recovery shall lead to the increase of trade turnover of Russian Federation with highly economically developed countries such as USA, Western Europe and Japan, the output growth, productive power increase, GDP growth, replenishing of the Federal budget and creation on the territory of the Russian Federation, including Moscow and Moscow region, neighboring regions on an extra-budgetary basis of new industrial food enterprises, and also make it possible to augment agricultural and industrial sector of the country, create new jobs and capital turnover on the territory of Russia.

 

Engineering data of the allocated territory in the industrial area «Kuryanovo»:

Space of the territory 18,51 Hectares
Including:
Site ¹1 17,45 Hectares
Site ¹2 1,06 Hectares
Total space of the object 55 000 m2
Total number of storeys 1-3 storeys

Performance specification of the sites and constructions scheduled to be built:

Site ¹1
Cold stores ¹1 (fish), ¹2 (meat): 5000 tons (each)
— Dimensions in plane 126,0 õ 36,0 m
— Height 6,0 m
— number of storeys 1
Fish-processing complex:
— dimensions in plane 48,0 õ 168,0 m
— height down to the bottom of structures 6,0 m
— number of storeys 1
Meat-processing complex:
— Dimensions in plane 48,0 õ 168,0 m
— height down to the bottom of structures 6,0 m
— number of storeys 1
Block of service shops:
— Dimensions in plane 24,0 õ 144,0 m
— height down to the bottom of structures 6,0 m
— number of storeys 1
Administrative and amenity building:
— Dimensions in plane 15,0 õ 324,0 m
— height of storey 3,3 m
— number of storeys 3
— treatment works
— dimensions in plane 18 õ 24 m
— height down to the bottom of structures 6,5 m
— number of storeys 1
Site ¹2
Garage: for 50 motor cars
— Dimensions in plane 18 õ 60,0 m
— height 6,0 m
— number of storeys 1
Administrative and amenity building:
— dimensions in plane 9,0 õ 18,0 m
— height of storey 3,3 m
— number of storeys 2


Administration of the region:

GOVERNMENT OF MOSCOW information and inquiries service.
Address: 103032, Moscow, Tverskaya street, 13.
Phones: (095) 234-32-95, (095) 777-77-77.
Fax: (095) 234-32-95.
Url: http://www.mos.ru

Location of the large wholesale industrial food processing complex

The large wholesale industrial food processing complex will be located in Kuryanovo industrial zone of the South-East Administrative Okrug (SEAO) of the city of Moscow at Proyezd 4294. Under provisions of a long-term lease, Korben International holds title to two development sites of 18.51 hectares in total area in Kuryanovo industrial zone of Moscow SEAO for building a large wholesale industrial food processing complex.
Site# 1 of 17.45 hectares is demarcated: in the North, by Proyezd 4294, the premises of TOO "Kovcheg" and ZAO "Kompaniya Mai;" in the West and South, by Proyezd 4386; in the East, by Proyezd 1481. Site# 1 is fenced, guarded and equipped with welfare spaces of 250 sq.m
Site preparatory work and build-up have been completed (Act of acceptance for preparatory works of 29.12.2004)
Site# 2 of 1.06 hectares is demarcated: in the North, by Proyezd 4294; in the West, East, and South, by the premises of ZAO "Kompaniya Mai." The nearest residential area is 500 m away. Site# 2 has been fenced, it is guarded. Preliminary works have been completed (Act of acceptance for preparatory works of 29.12.2004).

The design declaration

Several factors of successful realisation of the Project

  • eat Processing Complex is being developed and managed by the team of successful professionals with confirmed long standing experience of realization of industrial productions.
  • Payable demand of the population of Moscow is confirmed by independent survey. It allows to lower by 20% the existing level of prices for the processed meat products (cold meat, minced meat, heated smoked sausages etc.) and still leave EBITDA margin at the high level of 40-50%. At the structure of food consumption in Russia the deficit of meat is obvious: 58 kg per capita a year or 60% of indicators of the USSR compare to consumption levels in Europe of 80 kg per capita a year and the USA (100 kg per capita a year)
  • The complex is strategically well located in the industrial region of Moscow (Kuryanovo) with accessibility for the personnel, transport, logistics networks of industrial consumers and retail outlets.
  • Project has equity support and assets, already built at the land by the Owner of Project. The value of 49-year lease for land is 80 mln USD, the value of invested funds is not less than 21.5 mln USD
  • Project Owner has received the readiness by the leading companies-suppliers of meat-processing and technological equipment to use the schemes of structured export-credits and participate in investments and management of the Complex
  • The realization of the Project confirms a significant social and fiscal effect, including the increase of employment, increase of the quality and accessibility of meat products in Moscow and the region.
  • Fundamental value of the business and the companies from the sector of vertical meat-processing (Cherkizovo Group) is supported by stable quotations during 2009-2010 in LSE.
  • The President of Russia D.A.Medvedev and the Chairman of the Government V.V.Putin during several disputes had confirmed the priority of the development of food processing industry within the industrial policy of Russia
  • Technical and technological characteristics of the project

  • At the beginning of 2011, the projected DDP-price for frozen pork is 75 RUR\kg, DDP-price for beef is 90 RUR\kg. It is projected that the price will rise by 5% in a year
  • The off-load of ships will be in Finland. Refrigerated containers will be delivered by trucks (MAN) and frozen meat will be stored in two freezers, 5000 tonnes each. The customs post will be located there also. After customs clearance the raw meat will be stored into freezer.
  • After refreezing of carcass of pork and beef, they get to the conveyer line of boning and processing (the suppliers is Marel EHF, Germany), which consists of a part of cutting the carcass by pieces, equipped by the system of computer scanning and weighting and distributing of products.
  • The Software and measurement system enables to control the whole process of production and gives the full information on productivity of the system, quantity and quality of the ready products. The line increases the output of the ready products and minimizes the loss of the meat.
  • The production of portion-based, small pieces semi-frabricated products is achieved from large pieces. The products are produced in breaded form. Portioning is done at «ScanPortioner I-Cut 36» (the producer is «Marel EHF, Germany).
  • Social-Economic features of Moscow and the region

  • The production capacity of the Complex (80 thousand tonnes a year) is only 15% to the consumption of beef meat in Moscow (600 thousand tonnes a year) and pork (500 thousand tonnes a year). This will enable for quick distribution of the products of the complex
  • In Moscow region several factors contributes to a large share of sausages in total consumption of meat products. That is why Moscow is attractive market for producers of real meat products
  • Major food product, effecting the health of the nation is high quality meat products, produced from whole meat.
  • Considerable part of the population of Moscow (over 16%) have to buy sausages
  • Statistics of the market shows a steady increase of prices for meat for the last 15 years. AT the same time, the consumption demand, especially for sausages continues to grow. Consumption in Moscow is 30% higher than in Russia in general
  • Consumer markets and major consumers

  • Maroe markets are Moscow and Moscow region, as well as some areas of the Central Federal District
  • Target Markets are large retail networks, wholesale distributors and supermarkets (O’key, Metro Cash&carry, Magnit, X5, Deshevo network, Ashan, Azbuka Vkusa, which will contribute to 40% of total sales.
  • The rest 60% of sales will be comprised of deliveries to large industrial enterprises, located in Moscow and Central Federal district.

  • Volume and structure of necessary CAPEX

  • As of 01.11.10 total amount of completed project, design, construction works constituted 21,5 mln USD. Projected CAPEX is 172 mln USD., including construction works, electric station, design works – 91.5 mln USD, equipment – 80.5 mln USD.
  • Investment Proposal

  • Korben International considers the placement of up to 30% of equity for the price of 40 mln USD to capitalize the equity base of the project
  • The Economy of the project and the capitalization of Korben after completion of construction and start of production of up to 80 thousand tonnes a year enables to look for dividends from 2012, beginning of pay-back of debt from 2012 and exit of Investor via capitalisation at the leading stock exchanges (Moscow, London, Hong Kong) during 2014 – 2018 at the market capitalisation base of P\EBITDA not less than 4.
  • This enables the return (IRR) not less than 44% a year on the basis of return of total investments (ROIC) not less than 25% a year.
  • Banks and credit organisations expressed the interest to participate at the debt part of the project (project part of 70%-share of financing of total investments)
  • Financial Plan and financing scheme - 1

    Financial Plan and financing scheme - 2

    Financial Plan and financing scheme - 3

    Financial parameters of the Project

    Risks of the Project and management of them

  • Stability of supplies: is provided by long term delivery contracts with the leading producers of meat from the USA, Canada, Denmark. Part of supplies will be provided from Russia.
  • Stability of energy supplies: Electric Station as part of the project, high professional level of personnel in Moscow, with high salary levels comparable with developed markets.
  • Stability of the markets: diversification of the deliveries into the retail networks and to industrial enterprises of Moscow and Moscow region
  • Professionalism and motivation of the personnel: confirmed practical experience in creation and management of complicated industrial structures
  • Fulfillment of requirements for prices, delivery time, construction costs and works: highly professional and technological supplying companies from Western Europe. Bank guarantees in performance bonds of general construction companies on the project.
  • Dynamics of prices for meat products have been growing for the last 15 years with the quickest rate among all food products
  • Competition: production of Korben will have an import substitution function. Relative costs of capex is 40-50% lower than in projects done in Kaliningrad, Odintsovo (Moscow region), Leningrad oblast.
  • The Project owner

  • «Korben International Industrial & Financial Corporation, Inc.»(was formed 12 December 1994 year by Mr. Peter Korotkevich, the sole owner of the corporation.
  • Practical activity of the company in Russia is targeted for creation of 100%-private enterprises and meet the requirement of the Government of the USA on increase of participation of US-corporations in Russia, which consume the goods produced in the USA and which have not less than 51% share of participation in an appropriate enterprise.
  • Corporation is the member of international organisations:
    1. American-Russsian Business Council;
    2. American Trading-Industrial Chamber in Russia;
    3. Global Association of International financial institutions;
    4. National Association of producers of food products in the USA.

    The Team

  • President-Chairman of the Board of Korben - Peter Leonidovich Korotkevich, Academician of the Academy of Natural Sciences of Russian Federation. Before he was Vice Chairman of Scientific-Technical coordination Board of Minobshemash and the Presidium of Academy of Sciences of the USSR, Vice Chairman of Expert Council under the Chairman of the Government of the Russian Federation, specialist with long standing experience in organisation and management of scientific, design, industrial enterprises of defense industry in the USSR.
  • Board members of the Company have extensive professional experience of realisation of industrial and construction projects (KAMAZ, fish processing, oil processing, construction materials, etc.) and good business connections in international financial and banking environment, which enables the Corporation to achieve practical results
  • Robert E. Berls – Senior Vice President, Directro on Administrative issues
  • Sergei A. Bayov – Vice President, director on financing and economic issues
  • Yury I. Skuratov – Vice President, director on legal issues
  • Andrei P. Korotkevich – Vice President, Director on development
  • Roman M. Djavakhyan – Vice Head of Representation, Head of legal service
  • Alexander A. Krasilnikov – 1st Deputy Head of Representation, Director of Department of capital construction
  • Ekaterina Yu. Naumova – Chief Accountant of Corporation
  • Oleg G. Chekin – Deputy Head of Representation on administrative issues
  • Alexander P. Kofanov - Director, Chief Engineer of design project service
  • Dmitry N. Zagrebelny – Head of Security. Assistant director on general questions.
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    Suppliers of the technological equipment:

    1 GEA Grasso International GmbH Germany
    2 TEDOM, s.r.o. Czech Republic
    3 MAN Nutzfahrzeuge Aktiengesellshaft Germany
    4 MAREL EHF. Germany
    5 LLC"O.V.K.-Energo" Germany
    6 Kometos oy Finland
    7 Vemag Germany

     

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