Vostochny Fish Processing Plant LLC launches another onshore fish processing factory

Symbolical start buttons were pressed by high-ranking guests – Khabarovsk region Governor Vyacheslav Shport and Federal Fishery Agency Director Ilya Shestakov. Numerous journalists were taking pictures of a neatly arranged paved yard, new white building under a blue roof, numerous coordinated movements of equipment and people in production areas. But the huge amount of work completed in a short time remained outside the camera’s view. Only 9 months had passed from the project conception to the moment when the first fish was supplied to reception bins.

It is a very short time for a facility with a design production capacity of 350 tons of salmon per day. Keeping in mind that time is required for designing, construction of buildings and fabrication of equipment and that delivery of long lead items may take five or six months, this is a record-short period for project completion. This became possible only because plant designing, production, delivery, installation of equipment and pre-commissioning was performed by a Russian company with ample experience in implementation of such projects – Technological Equipment LLC.

“Our company has been successfully operating in Khabarovsk region for a long time,” says Oleg Komarov, Director General of Technological Equipment LLC.  “If we consider onshore factories only, with their key raw material being salmon, it is our projects that have been the largest and most advanced ones in the region. First, it was a fish processing factory for the Fishing Collective Farm named after V.I. Lenin in Okhotsk, then it was a factory for FIC Vostochnoye LLC in Innokentyevka and now we have this factory in Chnyrrakh village.

Another important circumstance was that the customer had had a very clear idea about what kind of plant they wanted from the very beginning, and had held a strong and responsible position. By the way, the project initiator was Fishing Companies Association of the Amur Basin and its Head Alexander Pozdnyakov. This nongovernmental organization plays a very active role in the development of fish production and processing in Khabarovsk region. Suffice to say that its other initiatives include establishment of Nikolayevsk Rapid Economic and Social Development Area, with an application for its registration already submitted to the Ministry for Development of the Russian Far East, and the construction of a specialized fish cargo handling port in Komsomolsk-on-Amur currently being under consideration by the regional administration.

“We set a task of creating a short access to the Sea of Okhotsk. It will solve many issues relating to logistics, fish harvesting and fish products delivery, onshore fish processing,” Alexander Pozdnyakov said about prospects for fishing industry development in Nikolayevsk district. “It is particularly important today, when Khabarovsk region ranks second in terms of salmon production among Far Eastern regions. We have considered all assumptions, scientific forecasts and past experience – that’s why the startup of such a large factory in Chnyrrakh by the beginning of this year’s salmon run season became a very timely solution.”

The Association contributes to filling Russian markets with quality fish products. This fully applies to the new factory.

“Speaking about deliveries, they are largely focused on Russian regions,” says the Chairman. “As for exports, we try to get a foothold in Asian Pacific markets, but it’s more comfortable and easier to deal with domestic companies.”

The cost of this new plant for the customer amounted to nearly 1 billion rubles, which is a serious investment. Making large investments into business development is currently a typical business model for fishing companies. Governor of Khabarovsk region, Vyacheslav Shport, commented on that as well.

“Fishing companies actively invest in their development,” the governor said at the opening ceremony. “This new factory opens up good opportunities for Chnyrrakh village and for Nikolayevsk district as a whole. It means a steady flow of tax deductions to the local budget and new jobs. But we will not stop at this point. We work on creating a more favorable environment for building up a capacity for processing of aquatic living resources.”

There are objective reasons for growth of investments in the production and processing areas. As industry analysts say, a fishing company rather quickly reaches a limit of its capacity for fish catching and “as is” sale of the product to the third party processors. Any further development is possible only through establishment of an in-house processing capacity.

“Generally speaking, any organization engaged in fish catching becomes aware, at a certain point, of necessity for its own processing capacity, of the primary and manual kind, at least, together with freezing power output,” explained Oleg Komarov. “Then a moment comes when they need a mechanized and automated process flow, because they already cannot operate without such systems. The majority of companies reaching this level are based in Kamchatka and smaller numbers are based in Sakhalin and the Kurils. It is good to see that Khabarovsk region-based fishing companies also start reaching this level.”

Fish processing capacity development is undoubtedly a positive trend to be encouraged and facilitated by governmental agencies. This viewpoint was voiced by Ilya Shestakov, Federal Fishery Agency Director.

“We give our full support to business initiatives on creating processing capacity and work on reduction of fish products rail tariffs. We have to make fresh goods more affordable in price terms,” he noted further.

In addition to cheaper logistics, another factor for fish product price reduction is the substitution of imported foreign-made fish processing equipment which reduces equipment prices and, accordingly, fish processors’ costs. Vladivostok-based Technological Equipment Engineering Company plays a key role in this process. Suffice to say that during one month Ilya Shestakov attended two grand opening ceremonies at facilities designed and constructed by these Vladivostok engineers using their own-manufactured equipment. The first one was a unique plant producing fish oil and fish meal from waste of salmon and other fish species for Chistyi Ostrov LLC opened in Starodubskoye village in Sakhalin region on July, 08.

Alexander IVANOV, Fishnews Magazine

September, 2016.