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China mulls building 5 tomato processing plants in south Russia

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ROSTOV-ON-DON, June, 15 (RIA Novosti) - Chinese company Chalkis is considering building five tomato processing plants in southern Russia, the regional administration said Thursday.

With foreign companies, particularly automotive concerns increasingly frequently targeting the northwest and central Russia, the $200 million project would be something of a coup for the Volgograd Region.

"The plants are to produce 200,000 tons of tomato products a year - ketchups, concentrated juice, and paste," a regional administration official said.

Pavel Chumakov, deputy head of the regional administration, earlier said the project was only feasible as a Russian-Chinese joint venture.

Speaking Tuesday at the St. Petersburg International Economic Forum, President Vladimir Putin said that direct investment into Russia's economy in 2005 had grown by about 40%, and that this year the government expected the figure to be even higher.

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