A new major player has entered the pesticide market
On October 7, 2020, the opening ceremony of the Shans Enterprise plant in the special economic zone named Lipetsk took place. The plant will produce crop protection agents and was built by the Shans (Chance) Group.
The enterprise is built under the European safety requirements and tooled up with the latest equipment from the world’s leading manufacturers. The new plant has provided jobs for 350 employees in the Lipetsk region. The plant will produce 50 million liters of crop protection agents per year. The products will be packed in containers of the plant’s own production with a volume of 5 and 10 liters.
The company has almost completed the process of registration of its drugs in six CIS countries. Shans Enterprise plans to soon begin deliveries of its products to the neighboring countries with the estimated export volume of 6-7 thousand tons. Besides, the territory of the enterprise allows the creation of several other workshops for the production of new biological products.
“The opening of this enterprise is significant not only for the Lipetsk region but for the entire industry of crop protection chemicals,” noted the Deputy Minister of Industry and Trade of Russia Mikhail Ivanov. “This industry is actively developing. Over the past ten years, the crop protection agents market in Russia has tripled, while its production has shown eight times growth. We hope that with the launch of the new enterprise, we will increase the production capacity for the output of the crop protection chemicals up to 300 thousand tons per year.”
The President of the Shans Group noted that 4 billion rubles ($51,4 million) invested in the creation of the Shans Enterprise plant for the production of crop protection agents is a claim for leadership in the industry and a significant contribution to increasing the export potential of Russia.
At the moment, the Shans Group ranks No. 4 in terms of sales of crop protection agents among domestic companies. By the end of 2020, the company plans to expand its product portfolio.
The Shans Group notes that the new restrictions implemented to prevent the spread of COVID-19 shouldn’t greatly affect the agricultural industry. At the same time, the growth of the dollar hurt the economy of the enterprise, particularly, the raw materials purchased abroad rose in price by 23%. Nevertheless, the Shans Group, taking into account the trends in the development of the agricultural industry in Russia, predicts only growth and plans to return its investments over the next 10 years.