2 Sept, 2008 - OJSC PAVA plans to become a leading Russian company in advanced grain processing through the implementation of its new project. The decision was made with a view to shift the company's business from flour industry characterized by overcapacities and relatively low margins to higher margin activities.
This project will be oriented on the production of vital wheat gluten, wheat starches, syrups, compound animal feed, liquefied CO2, wheat germ oil and alcohols – of beverage, fuel and industrial grades. In view of the recent developments on the global food and feed markets, management of PAVA reconsidered the initial production plan so as to engage most of the resources in manufacturing of food ingredients and animal feed – which will now account for 80% of the total output.
Taking it a step further, a very important point about this project is the flexibility of the outputs making up the final production volume. It means that due to the chosen technology the company may take into account the current supply and demand situation on the market and adjust the shares of manufactured goods to better suit the market needs and improve the economic performance. Consequently, at different periods PAVA may produce different amounts of starch products, alcohols, etc.
As it has already been stated, the new plant will be built on the basis of the existing production facilities in the Rebrikha district (the Altay Territory) where one of the grain processor’s flour mills is located. The project is designed to enhance the operational efficiency of the plant and economic indicators of its activity. The company plans to reconstruct and extend these facilities, and add three more plants – for production of gluten, starches and alcohol. This integration of traditionally independent processes gives significant competitive advantage to the company, allowing to use by-products of one process as feedstock for another and create a high synergy effect.