Investment Portal of the Arctic Zone of the Russian Federation

With permafrost in mind

A resident of the AZRF to build pile plant in Chukotka

13.10.2022 // ChukotSakh, a resident of the Arctic Zone of the Russian Federation, will build a fish processing plant in the Anadyr Industrial Park. The unusual thing about the project is that the enterprise will stand on piles. The company's management stresses that, in the Chukchi climate, this is the most sensible approach to construction.

'This decision was made because construction will be carried out on permafrost,' explains Vitaly Mrykalo, Director of ChukotSakh. 'Conventional foundations in such conditions sooner or later start to wobble and sway. And the piles are quite stable—they are resistant to different types of loads, dropping temperature and changes in the ground. In addition, a pile foundation is cheaper than a strip or slab foundation.'

At the first stage, investments in the project will amount to RUB 20 mn—this is the company's own funds. Subsequently, their volume will increase. The investment will be used to build a building, buy fish and caviar processing equipment, freezer cabinets and trucks.

'We plan to get a building permit in November. We will start building in December, purchase equipment in the spring and start installing it. It is important for us to launch the plant by the autumn of 2023 to start working with fresh catch immediately—as you know, the salmon fishing season in Chukotka runs from July to September, so we need to be in time!' says Vitaly Mrykalo.

The plant will have the capacity to process 40–50 tons of raw materials per day. In the first season, only frozen fish and salted caviar will be produced, but in the future, the range will expand to include chilled, salted, marinated, stock and dried fish. The company plans to use different types of packaging, such as rolling, sterilising and vacuum packing.

In the longer term, the company plans to establish its own fish production, but will initially buy raw material from local fisheries.

'There are not many fish processing plants in Chukotka. It is not uncommon for fisheries to be in a situation where they do not know who to sell their catch to and cannot process it themselves. Our plant can help solve this problem. And in general, I hope we will find a common language with everyone who wants to work with us,' says Vitaly Mrykalo.

The new plant will create 35 jobs, primarily for local residents. The resident company's management cites insurance premium compensation as one of the most tangible support measures provided by the Far East Development Corporation.