Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Novgorod to Get Sweet Investment




ST. PETERSBURG -- Leading Danish candy maker Dandy AS will open a $100 million chewing gum factory in the Novgorod region in June, two months ahead of schedule, the company said.


The absence of anticipated bureaucratic and logistical problems allowed Dandy to push the opening date to June 12, the day when Novgorod celebrates the 1,150th anniversary of its founding, said Philip Wegh, general director of the Dandy factory, in a telephone interview from Novgorod.


The Novgorod region, located between Moscow and St. Petersburg, has one of Russia's most attractive investment climates. Investors get tax breaks of up to 30 percent until the costs of the enterprise are recouped.


The 175 million Deutsche mark ($103 million) factory will have the capacity to produce 7,000 tons of Stimorol and Dirol chewing gum brands.


Of Dandy's 175 million mark investment, 100 million marks is in the form of a syndicated loan from the European Bank for Reconstruction and Development.