Tumen Shuvuut expands poultry business with IPO earnings
- By Dulguun Bayarsaikhan -
- Sep 05,2019
Tumen Shuvuut, a newly registered company on the Mongolian Stock Exchange, successfully mobilized 10 billion MNT from an IPO this year to carry out a comprehensive agricultural project. The company reported on its spending of the generated fund on Monday.
As of August 22, Tumen Shuvuut had spent 1.8 billion MNT on poultry expansion, 1.1 billion MNT on the construction of a factory that produces bird excrement fertilizers, 889.2 million MNT on expansion of irrigated farming land, and 842 million MNT on building a new poultry farm with 200,000 birds.
The company has projected a total of 2.8 billion MNT for the poultry expansion, 3.9 billion MNT for the development of a new fertilizer factory, 1.7 billion MNT for the new poultry farm, and 1.6 billion MNT for the expansion of irrigated land.
Poultry expansion project
Within the scope of this project, Tumen Shuvuut plans to renew Poultry Building No. 8 and egg factory to broaden its operations.
Beever LLC has been contracted for this project and around 105 million MNT has been transferred to the company as advance. Tumen Shuvuut signed a buy and sell agreement with China’s GGP Equipment Company and bought equipment worth around 495 million MNT for Poultry Building No. 8. The equipment assembling work is progressing at a 90 percent completion rate.
The company spent nearly 450 million MNT on construction materials and another 188 million MNT on other relevant expenses.
As for the egg factory, Tumen Shuvuut transferred 53.46 million MNT as advance and bought required construction materials for 227 million MNT.
New poultry farm project
The farm will be built in Ikh Bulag area in 21st khoroo of Songinokhairkhan District. The company bought 20 hectares of land for 216 million MNT for the farm.
At present, the company is taking care of issues related to electricity supply and water supply with relevant agencies.
For starters, the project will build separate coops for poultry chickens and chicks. Contractors have received 48 million MNT as advance, while GGP Equipment Company received around 580 million MNT as advance for equipment and building materials.
Project to build fertilizer factory
This project aims to build a new factory to produce organic fertilizer using bird droppings at the poultry farm in 13th khoroo of Khan-Uul District. Project executor Duut Zam has received 136.4 million MNT in installment.
Tumen Shuvuut signed an agreement to buy equipment worth 827.4 million MNT from Japan’s Kohshin Engineering Co., Ltd and the equipment is expected to arrive in early-September.
So far, the foundation for the factory has been laid.
Irrigation land expansion project
Tumen Shuvuut operates in Ulaanbaatar and Baruunturuu soum in Uvs Province. The company invested in the repairs of Usjuulakh JSC’s artificial lake irrigation system, covering 4,000 hectares.
Over 700 hectares of the land were fully equipped with the latest irrigation equipment from May to June and wheat is growing in 473 hectares of the land. The new equipment was worth 889.2 million MNT.