OREANDA-NEWS. December 24, 2007. Russian company Pava will build a plant for the production of bioethanol from wheat worth between 150 mln euro ($219.3 mln) and 200 mln euro ($292.4 mln) in Altay region, southern Siberia, the company's vice president, Sergey Stolbov, said.

Pava plans to start the construction of the plant in 2008 and complete it by the end of 2010. The enterprise expects to produce 100,000 tonnes of bioethanol per year at the beginning of its operation and will increase its capacity twofold in the future.

The company plans to use its own funds as well as loans from local and foreign banks and partners in the project. Pava also expects to receive a subsidy from the government. The project's payback period is seen at less than five years.

The plant will be built at the territory of Rebrikhinsky Flour Mill, which is part of Pava, in Rebrikhinsky district of the region. The plant will combine three production processes: milling, production of gluten and production of bioethanol. It will use by-products of one production process as a raw material for the other.

Pava ranks among the five largest Russian grain processing companies. The company accounts for over 3.0 pct of the total flour output in Russia. It owns three flour mills, two in Altay region and one mill in Krasnoyarsk region, central Siberia.