The Danish compan Dansk Tyggegummi Fabrik AS, owned by Dandy, will provide the equipment necessary for the venture, while former Russian defense enterprise Spektr will provide the premises, Interfax said.
Charter capital for Stimorol Chewing Gum AS is 12 million Danish Krone ($2.2 million), although neither side would divulge how company shares will be parcelled out. Financing comes from the Danish Investment Fund for Central and Eastern Europe, and the project will enjoy tax-free status until it achieves its designed capacity.
The first stage of the project is expected to cost $10 million and involve delivery, installation and trial runs of the packaging equipment, Interfax reported. The first trial batch of chewing gum is expected to roll off the line sometime next year.
Stage two will bring the facility up to capacity, although no costs were given by the firms.
Dandy Board Chairman Holger Serensen told Interfax that his firm chose Novgorod for its geographical location and the regional administration's favorable investment policy.
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