OREANDA-NEWS. September 22, 2008. Ukraine's Nemiroff, a leading producer of vodka and liquors in the Commonwealth of Independent states, plans to build a distillery in Russia on the border with China, Alexander Glus, the chairman of Nemiroff Holding's board of directors, said at a news conference in Yaroslavl.

Nemiroff launched the production of vodka in Russia with a new line, installed at Yaroslavsky distillery, and part of the output will be exported to China.

But neither the new line in Yaroslavl, nor a new distillery the company is planning to build in central Russia in the coming couple of years, within the Golden Ring historical heritage zone, can meet the growing demand of Nemiroff vodka in China. Nemiroff vodka exports to China will increase three times this year, he said.

"Therefore, the company will probably weigh plans to build a distillery on the border with China," Glus said.

Earlier reports said that USD60 million at a minimum is expected to be put into the construction of a distillery in central Russia, with an annual capacity of at least 10 million deciliters.

Ukraine's Nemiroff Company, the manufacturer of Nemiroff products, is part of Nemiroff Holding, which also comprises the Nemiroff management company, the Alco Invest and Nemiroff Media companies, with Nemiroff representative offices in Russia and Poland. Nemiroff products are exported to 55 countries.

The company's turnover was USD 479 million in 2007, compared to USD 398 million in 2006.

The Yaroslavl distillery was founded in 1901. A 51% stake in Yaroslavsky Distillery is held by the Rosspirtprom wholly-owned state company. In 2007 it sold 375,000 deciliters of vodka and liquors, and 82,200 deciliters of drinking water. The range of Yaroslavsky products include 35 brands of vodka and 15 brands of liquor, as well as grape wine and drinking water.