Avgust will invest $3.9 million in the production of home farms products
The Avgust company plans to launch additional capacities to produce plant protection products for gardeners in 4Q2023. The production will be located in the Chuvash Republic, at the site of the branch of Avgust. In the two-story building, where technical re-equipment is currently underway, 2 technological lines for the production of granular preparations with a total capacity of 1 ton per hour will be installed. Avgust is a leading domestic company for the development and production of chemical plant protection products.
The branch of Avgust began the technical re-equipment of the building for the production of plant protection products in small packaging for use in private household plots. It’s planned to install 2 modern technological lines for the production of granular drags with a total capacity of 1 ton per hour. The packing area will consist of 3 automated lines. Also, the building will be equipped with warehouses for raw materials and finished products.
Of the 4 factories of the Avgust company, specializing in the production of plant protection products, only the enterprise in Chuvash Republic has a workshop for the production of drugs for household farms. The remaining 4 workshops of the company’s branch produce products in large packaging for companies in the agro-industrial complex. The need to expand the production of plant protection products for gardeners arose due to the increased demand for granular preparations. Today, the profile shop of the plant already produces 12 types of products in the form of granules to combat various pests. The assortment of the enterprise also includes root formation stimulants. The list of such products will gradually expand. In turn, the transfer of production and packaging of granular drugs to another building will free up production facilities for increasing the capacity for bottling liquid drugs.
“The specifics of the private household farms market is that 60-70% of products are sold from March to June,” says Lyudmila Lyulyeva, head of the department of plant protection products for smallholder plots of Avgust. “If during this time the goods are not purchased, then until next spring it’s unlikely that anyone will be interested in them. Therefore, for some positions, a two-week delay in product release can be fatal, and it’s critically important for us to ensure uninterrupted production. At the same time, we constantly lacked raw materials for packaging and production could not cope with the increasing volumes. And although at the moment it’s difficult to talk about the growth of the market for plant protection products for household farms due to the general decline in consumer demand, we nevertheless expect it to recover and increase sales.”
According to the statement of Lyudmila Lyuleva, it’s planned to increase the production of existing drugs in various packaging. A few more products planned for production are in the process of registration.
Currently, the building is under construction, including the installation of metal structures to accommodate equipment, the construction of lifts for freight elevators, and the laying of pipelines for the supply of compressed nitrogen and thermal energy in the form of steam and heating water. A significant part of the equipment has already been purchased and contracts have been signed for the supply of the rest. The expansion of production will provide 30 new jobs at the plant, and the total investment should amount to 300 million rubles ($3.9 million).