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OJSC Cherkizovo Group, one of Russia's leading integrated and diversified meat producers, announces the commencement of production at three new complexes within its pork segment.
As part of Cherkizovo Group’s dynamic development strategy in the Pork segment, the Company has launched production at its three greenfield pork farms in the Tambov, Voronezh and Lipetsk regions of Central Russia.
The new best-in-class integrated multi-site complexes can house 4,800 sows and each have an estimated full capacity of 12,500 tonnes of live-weight pork per year. Each complex includes separate breeding, rearing and fattening facilities, equipped with state-of-the art technology.
Cherkizovo began construction at these sites in the autumn of 2010, with breeding facilities at all three complexes being launched in 2011. The building of rearing and fattening facilities is currently underway and these are anticipated to be launched in 2012.
The total consideration for the planned investments is expected to be approximately US$130 million, of which approximately 20% will be funded by Cherkizovo and the remaining balance from bank loans.
The complexes are expected to reach their full combined capacity of 37,500 live-weight tonnes by the end of 2013.
Sergey Mikhailov, CEO of Cherkizovo Group, said: “I am very pleased to announce the commencement of production at three new pork complexes - reflecting Cherkizovo’s support for quality domestic meat production in Russia. The new sites in Tambov, Voronezh and Lieptsk will enable Cherkizovo to increase production capacity in the high-margin pork segment, and their proximity to Cherkizovo’s existing pork and processing facilities will offer significant future synergy benefits for the Group.”
November 11, 2011
