Novosibirsk Oblast, its six eastern districts, is one of the Russian regions where flax fiber is grown. Novosibirsk Oblast has good natural climate conditions, namely soil, rainfall and rainfall distribution during the growing season, abundant dew when the flax straw matures, and is green and environmentally friendly, which is suitable for the cultivation and production of high-quality flax fiber. The production of flax fiber is a highly profitable enterprise and achieved good results in the world market in 2014-2015. Due to the lack of high-quality flax fiber and yarn in the markets of “textile countries” such as China, India, and Turkey, this has also led to an increase in the price of flax fiber.
This project is not a new start, but uses existing income from processing long-stemmed flax and growing wheat. The area of Russian cultivated land is 20,000 hectares, of which 11,000 hectares belong to Russia, and the remaining cultivated land is leased for a long term (49 years). The area sown with flax is 4,000 hectares, and the rest is sown with wheat and fallow land. Demand for flax continues to exceed its supply, limited only by production capacity. Export capabilities are affected by the same factors.
This investment project can be divided into two sub-projects with independent terms and funds:
1) #10-13 high quality flax fiber production. Purpose: Export to China. The world market price of flax fiber is US$1,500-2,000/ton. At present, Russia has exported to the flax processing factory in Changzhou, Jiangsu, China, but the export volume is not large. The return on investment is three years, but part of the investment principal and interest will be repaid one year after this period. Total investment at this stage is €15 million.
2) Purpose of the project: To produce pure linen yarn and blended yarn in a linen yarn production factory, and export them to China, Southeast Asian countries, Europe (Italy) and other countries. It is planned to use advanced technology in the processing of linen yarn, namely pneumatically controlled spinning. There are only 4 companies in the world that use pneumatically controlled spinning to process linen. The factory start-up period is 1.5-2 years. The investment return after the factory is started is 2.5-3 years. Part of the investment principal and interest can be repaid at this stage and the cash flow from the first stage will be used from the investment stage. The total investment at this stage is 35 million euros.
Investment methods: securities investment (the ratio of capital contribution to the registered capital of a closed joint-stock company), direct investment, provision of loans, establishment of joint ventures, etc.
Interested companies can contact relevant personnel in West Siberia, Russia, who will provide detailed investment plans and answer your questions.
Contact person: Oleg Goloshyokov (Vice Chairman of Novosibirsk ZAOKhors Company, Member of the Novosibirsk Oblast)
Contact number: 8(383)218-47-53,218-44-91,8-903-902-5412
E-mail:[email protected]
Attachment: Novosibirsk Flax Project Introduction.zip
