UPDATE: Magnit to invest 40 bln rbl in Krasnodar industrial park

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MOSCOW, Oct 20 (PRIME) -- Russian retailer Magnit plans to invest about 40 billion rubles in development of an industrial park in the city of Krasnodar, where the company will set up goods production, CFO Khachatur Pombukhchan said on Friday in a conference call.

“We will focus on development of the Krasnodar industrial park. The park should be launched fully by the end of 2020…Investment in the industrial park should amount to about 40 billion rubles,” he said.

He said that production in the park will include production of mushrooms with a vertically integrated plant for production of compost, macaroni, flour, and confectionery products and many other products.

Pombukhchan said that Magnit bought agricultural company Moskva Na Donu, which will allow the retailer to produce potatoes, carrots, cabbages and onions. The retailer also approved its mid-term strategy for development of own production capacities until 2020, and major production facilities of the company will be located in the cities of Krasnodar, Tver, and Togliatti.

(57.5706 rubles – U.S. $1)

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