Chinese company to construct $5 bln hybrid farm in Ingushetia

Hua Shen, a Chinese company, intends to create in Ingushetia the Northern Caucasus's first facility to grow mushrooms, as reported by Jiang Zemin, the CEO of Hua Shen, at a meeting held with Head of the Ingush Republic Yunus-Bek Evkurov in Magas.

Chinese company to construct $5 bln hybrid farm in Ingushetia

Hua Shen, a Chinese company, intends to create in Ingushetia the Northern Caucasus's first facility to grow mushrooms, as reported by Jiang Zemin, the CEO of Hua Shen, at a meeting held with Head of the Ingush Republic Yunus-Bek Evkurov in Magas.

"We are ready to launch a 60 ktpd mushroom facility in the Republic at our cost and expense. A total of RUB 5 billion will be invested into the initial phase", Jiang Zemin said.

According to him, mushroom growing is a very promising area of the agribusiness and the facility will be profitable given the fact that there are no peer facilities in Northern Caucasus republics and this niche is vacant.

Jiang Zemin assured that immediately after an appropriate land plot is selected and agreements are executed in relation to tax privileges and utility infrastructure support, the company will proceed to implementing the first phase.

The Head of Ingushetia, in his turn, expressed interest in implementing the project noting that if the company's operations are properly arranged it will generate good revenues for both the investor and the Republic's budget. He said that profit tax would be reduced for the investor to 13.5% for the entire payback period of the project and the investor would also enjoy full exemption from property tax for five years and a 95% reduction in rents payable for the land.