RAO AgroMilk GmbH sets up milk complex in Azerbaijan

Business Materials 27 February 2010 16:30 (UTC +04:00)

Azerbaijan, Baku, Feb. 27 / Trend I. Khalilova /

JSC AG STAFASUD was registered in Azerbaijan through a system of "single window" of the Ministry of Taxes. Its construction is implemented by the Azerbaijani Investment Company (AIC) and the German company RAO AgroMilk GmbH.

The company was registered on Jan. 27, 2010. The founder of the company became RAO AgroMilk GmbH, but Rasul Orujev - a legal representative. Ltd. is registered with an authorized capital of 200,000 manat.

A milk complex will be located in Agstafa region, in the village of Boyuk-Kesik. It will combine four farms.

According to the project, the capacity of a milk complex will be 50 tons of milk per day. The company will produce five types of milk, yogurt, sour cream in the first two years.

It is estimated that annual demand of a milk complex in feed for livestock is expected to reach 65,000 tons, about 95 percent of the feed will be produced in the complex. About 2,700 hectares of land have been allocated for these purposes.

According to the primary calculations, the total cost of construction of the complex is estimated at 30 million euros. Primary authorized capital of the company will amount to 5 million euros, 4 million euros fall on foreign investors. AIC share will hit 20 percent in the authorized capital of the complex.

AIC and RAO Agro Milk signed a memorandum of understanding on construction of Aghstafa's milk complex in Baku in December last year. Loans from European banks are expected to be drawn to implement this project. Construction of the complex will start in the first quarter of 2010.