Evgeny Tugolukov
RUS
00:00 — 04.06.2020 / Releases

Don Agro International Expands Storage Capacity To Fuel Its Growth Initiatives

• The Group is set to invest S$1.9 million to significantly increase its storage capacity facilities from 65,000 tonnes to 95,000 tonnes
• Strategic storage expansion initiative will allow the Group to store larger amounts of wheat and sunflower seeds for longer periods with the intent to sell more during peak pricing periods, thereby resulting in the potential for greater profitability margins
• In line with its future plans as stated in its IPO offer document, the Group has also invested S$0.4 million in new machinery with the purchase of a John Deere Self-Propelled Sprayer  

Singapore, 4 June 2020 – Don Agro International Limited (the “Company” or “Don Agro”) and its subsidiaries (collectively the “Group”), one of the largest agricultural companies based in the Rostov region of Russia, has announced that it is investing in significantly expanding its storage capacity. 

The Group plans to invest S$1.9 million to expand its overall storage capacity facilities from 65,000 tonnes to 95,000 tonnes. This strategic storage expansion initiative will allow the Group to store larger amounts of wheat and sunflower seeds for longer periods with the intent to sell more during peak pricing periods, thereby resulting in the potential for greater profitability margins. Construction of this additional storage capacity has begun and the Group expects completion to take place within four months. 

With the additional storage capacity, the Group will also be able to harvest sunflowers more quickly and sow winter wheat within the most optimal time frame, translating to the potential for yields and overall profitability. 

In addition to the planned expansion of storage capacity, the Group has also invested S$0.4 million to purchase the latest John Deere R4023 Self-Propelled Sprayer which will allow the Group to boost productivity and optimise efficiency. With this new piece machinery, the Group will be able to further save on costs and reduce the reliance on labour. For both investments, the Group will be utilising internal funding to expand its storage capacity and acquire the new machine. 

Speaking on the Group’s latest development, Mr. Evgeny Tugolukov, Executive Chairman said, “Fresh off our IPO in February 2020, we have begun to execute the various strategies for growth to strengthen our position as one of the largest agricultural companies in the Rostov region of Russia. This additional capital expenditure on new machinery and the expansion of our facilities will allow us to improve yields within our crop business and enhance our operational efficiency. Ultimately, these efforts will translate to improved financial performance and thereby enhance long-term shareholder value.” 

Looking ahead, the Group plans to scale its business through the expansion of its arable land bank. Don Agro is also exploring opportunities in mergers and acquisitions, joint ventures and strategic alliances with both domestic and foreign companies. By leveraging on its expertise and experience, the Group intends to seek new and suitable opportunities to expand into other high growth regional markets within Russia, such as other districts within the Rostov region and the Krasnodar region in Russia. 

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Pictured: The John Deere R4023 Self-Propelled Sprayer on Don Agro soil located in the Millerovo District in Rostov, Russia  

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