OREANDA-NEWS. July 10, 2012. China’s Inner Mongolia Nailun Group Co. and Belarus’ state-owned Tolochin Cannery are negotiating a deal to establish a joint venture with an eye to producing starch and frozen French fries, with some USD 25 million likely to be invested in the Belarusian enterprise.

Tolochin Cannery CEO Anatoli Aniukhovski made a statement to this effect at a press-conference on Thursday.

China’s Inner Mongolia Nailun Group Co. seeks to establish proprietary Belarus-based starch production, Aniukhovski informed. A delegation from the Chinese company visited Belarus in late 2011 revealing a keen interest in Tolochin Cannery’s wine production, economic growth and development prospects, Aniukhovski said. In his words, a joint project with the Chinese corporation may bring as much as USD 25 million in direct investments.

Standing behind China’s interest in Tolochin Cannery is a relatively high yield of potatoes in the area – over 52 tonnes per hectare vs 37 tonnes in China.

Inner Mongolia Nailun Group Co. produces around 150,000 tonnes of starch annually, with exports totaling 40%. The Belarus-based joint venture will enable China to cut down foreign trade expenditures, as imports account for 80% of frozen French fries consumed on the Chinese market.

At the moment, the parties are busy negotiating the distribution of stakes in the joint venture, Aniukhovski informed.