Promagro to allocate 5,000 hectares for flax cultivation
05 December 2018
Promagro holding, a vertically integrated agroholding engaged in crop and pork production, intends to allocate 5,000 hectares in the Smolensk region of Russia for flax cultivation. According to the company, up to 40% out of this farmland area has been abandoned for about 20 years. The process of farmland reintegration is expected to be completed in 2020. The total worth of the investment is estimated at RUB 300 million ($ 4.5 million).
Promagro has also invested about RUB 2 billion ($ 30 million) in construction of the plant for flax fiber production, which is to be launched in 2019. After reaching its full capacity, the plant will process 10,000 tonnes of flax per year. Promagro plans to get about a 10% share of the Russian flax fiber market.