The company plans to invest $1.9 million on the expansion. The initiative will allow the company to potentially gain greater profitability margins due to their capacity to store large amounts of wheat and sunflower seeds for longer periods of time, with the intent to sell more during peak pricing periods.
The group expects construction of the additional storage capacity to be completed within the next four months.
Don Agro has also invested $400,000 to purchase the latest John Deere R4023 Self-Propelled Sprayer which will allow the company to further save on costs and reduce the reliance on labour.
For both investments, the company will be utilising its internal funds.
Looking ahead, Don Agro plans to scale its business through the expansion of its arable land bank. The company also intends to seek new and suitable opportunities to expand into other high growth regional markets within Russia.
Don Agro shares closed flat at 32 cents on Wednesday.
