South Korean companies investing in fish processing cluster in Russia's Far East

Published on
January 16, 2018

A pool of South Korean investors have announced they will build several fish processing and logistics facilities in the Primorsky region in Russia, with federal and regional authorities strongly backing the project. 

This summer, representatives of Korea Trading And Industries, Korean Seafoods, Unico Logistics, and the Port of Busan announced their intention invest USD 133 million (EUR 116.6 million)  through 2022 in construction of a fishing port, logistics, and production units producing crab meat, fish fillets, and fishmeal.

The representatives said the new development was targeted primarily for export to Asian and European countries. Production volumes were not revealed, but the group said they expected to create 2,360 jobs. Products are expected to be delivered to the Asian markets via the Port of Busan in South Korea and to the European countries by the Trans-Siberian railway. 

"I've been dreaming of building a fish processing complex for 20 years, and now I have an opportunity to get my dreams come true in Russia," President of Korea Trading And Industries Su Il Tai said in the announcement.

The first step of the project  will be construction of a seaport and logistics complex on the Cape of Nazymov located within the borders of the city of Vladivostok, the capital of the Primorsky region, said the region's governor, Vladimir Micklushevsky. 

"No big investments would be needed to launch the terminal and logistics unit, as some infrastructure already exists here. Building a fish cluster is what we have been keen to do for many years, but the authorities of Vladivostok have still failed to achieve this goal," Micklushevsky said in his comments on the project. 

The second phase of the project will include a market and a fish restaurant, along with additional production units. 

"A key to success for the projects is securing a spot for construction," said Kan Bu Wong, vice president of the Port of Busan's administration. He added Russian authorities have pledged to help the investors in handling bureaucratic formalities. 

The Korean businesses have received support from officials keen to attract money into the Far East economy and tackle economic and social problems. Russia’s vice premier and head of development for Siberia and the Far East, Yuri Trutnev, said he was grateful to the investors for their proposal and promised to provide as much assistance as possible over the course of the project. However, Trutney said the sale of the real estate where the project is planned will be auctioned in accordance to Russian legislation. 

In reality, though, state officials' support for the Korean project is likely scare away other bidders during the auction. In his remarks, Trutnev  said Russian policy is to give priority to Russian workforce development, and the number of jobs the project is likely to create will give the Korean project a strong hand in its future business negotiations.

Contributing Editor reporting from Saint Petersburg, Russia

Want seafood news sent to your inbox?

You may unsubscribe from our mailing list at any time. Diversified Communications | 121 Free Street, Portland, ME 04101 | +1 207-842-5500