The Russian language newspaper Kommersant has reported that McCain Foods is planning to build a frozen french fry processing factory in the Uzlovaya Industrial Zone situated in the Tula Oblast region of Russia, which lies approximately 193 kilometers south of Moscow.
According to the paper, among incentives for investors in the special economic zone are “zero import duty and VAT rate until 2065” and an incomes tax rate fixed at 2% during the first ten years of activity.
Kommersant also reported that the McCain Europe office declined to comment about the project, and the Development Corporation of the Tula region said that it could not provide information at the moment.
Meanwhile, since the story was published a spokesman for McCain was quoted by another source as confirming that talks are taking place between the McCain Europe and parties in Russia.
He stated: “As part of this process, a McCain legal entity has been set up to progress the opportunity. At this stage, dialogue between the two parties is still ongoing and therefore a final decision is yet to be made.”
McCain has been active in the Russian Federation market for many years, serving foodservice as well as retail clients. It reportedly has a 20.6% share of the national market, which Euromnitor International forecasts will grow 10% in value this year to $46 million. Russia imported in excess of 90,000 tons of processed potatoes in 2019, according to customs figures.