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INDUSTRIAL BIOTECHNOLOGY: NEW CATALYST FOR RUSSIA AGRI DEVELOPMENT

INDUSTRIAL BIOTECHNOLOGY: NEW CATALYST FOR RUSSIA AGRI DEVELOPMENT. PRELIMINARY INFORMATION NOVEMBER 201 1. LOCATION. The Modern Biotechnology Complex will be constructed in Chuvash Republic, the central part of Volga Federal Districts, Russian Federation.

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INDUSTRIAL BIOTECHNOLOGY: NEW CATALYST FOR RUSSIA AGRI DEVELOPMENT

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  1. INDUSTRIAL BIOTECHNOLOGY:NEW CATALYST FOR RUSSIA AGRI DEVELOPMENT PRELIMINARY INFORMATION NOVEMBER 2011

  2. LOCATION The Modern Biotechnology Complex will be constructed in Chuvash Republic, the central part of Volga Federal Districts, Russian Federation. Volga Federal District occupied 7.3% of the total territory of the Russian Federation while hosting 22.1% of the Russian population and producing 24.7% of the all agricultural products. Relatively remote location of the Federal District from the main import entrance points (Leningrad region – 1500 km, Krasnodar region - 1200, China border – more than 3000 km) is an additional motivation factor for development of vertical integrated production cycle (grain  products for human/animal consumption  meet production  food products). 2

  3. WHEAT GRAIN AS THE ULTIMATE SOURCE FOR BIOTECH INDUSTRY Russian Wheat Production Source: UN Food & Agriculture, 2008 Russia is one of the country with the high potential for the increasing the wheat output (current low land utilization ratio and product yield) Source: Russian Ministry of Agriculture

  4. PRINCIPAL SCHEME OF PRODUCTION Wheat grain (240,000 ton per annum) PRODUCTION FACILITY (CHUVASH REPUBLIC) Lysine Sulfate (50,000 ton per annum) Vital Gluten(17,000 ton per annum) Crystal Glucose (30,000 ton per annum) Feed Protein(61,000 ton per annum) Starch (20,000 ton per annum)

  5. LYSINE GLOBAL MARKET Lysine 65% (lysine sulfate), counted per lysine 98% Lysine 98% (lysine hydrochloride) • Lysine is the focus product for the planned production facilities. • Russian local consumption of lysine exceed 50.000 ton per annum (import only) and the demand is growing 10-15% p.a. due to the intensification of meet production in Russia.

  6. SOURCES OF COMPETITIVENESS Sources of competitiveness for the new biotech complex: • Low cost basic raw material (feed quality wheat grain), • Enhancement of traditional technology (proven at the pilot facility), • Production and sale of by-products (vital gluten, starch, feed protein, glucose) will seriously improve the economic efficiency of the production facilities, • Confortable logistic for raw materials and final products, • Controlled cost of utilities and labor. Cost structure for organic acid in Europe

  7. PRODUCTION FACIILITY LAYOUT Administrative building Parking Entrance gate 1 Entrance gate 2 Glucose storing facilities Main production building Intermediary storage Engineering complex Grain elevator Weighting chamber Grain acceptance facilities Warehouse Warehouse Warehouse Boiler room Electricity distribution substation Gas distribution substation Entrance gate 3 Lysine sulfate production building Tryptophan production building Cooler Cooler Laboratory building

  8. PROJECT TIMELINE

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