Cherkizovo Group has agreed to acquire a 100 per cent controlling interest in the Zarechnaya poultry facility, for a total consideration of US$5.2 million.
Located in the Penza region of Russia, the acquired poultry site assets comprise 41 bird houses, with a combined capacity of 1.55 million broiler hens. The site will be integrated into the existing Penza project, created in late 2009, thereby further increasing capacity at the cluster.
The Group will additionally invest approximately US$18 million in upgrading the Zarechnaya poultry facility. The site is expected to be operational from the fourth quarter of 2011. Once operational, its annual production capacity will be 22,500 liveweight tonnes, thus enhancing the poultry rearing capacities in the Penza cluster, and meeting the slaughter facility's hourly capacity of 14,000 birds.
The Penza region capacity increase project includes:
Sergey Mikhailov, CEO of Cherkizovo Group, commented: "The acquisition of the Zarechnaya poultry facility is fully in line with our strategy to develop our vertically integrated production facilities. Our investment in this project will improve the capacity and efficiency of our operations as we seek to meet the growing demands of the domestic market for high-quality Russian-produced meat products.
"Russia remains a significant importer of meat and Cherkizovo fully supports the government's objective for the country to be self-sufficient in poultry meat production by 2014. Cherkizovo's business development and investment over the next three to five years will make a significant contribution to the import substitution programme.
"We have proven our commitment by continuing our investment to build capacity, even in a difficult economic environment, and we are continuing our efforts to accelerate the implementation of these projects
Petelinka, one of Cherkizovo Group’s flagship brands and the best-selling chicken product, has entered into partnership with the iconic GUM Ice Rink, which opens annually on Red Square. This year, visitors will have an opportunity to take a break in the cozy Petelinka cottage and take photos next to a Christmas tree standing on chicken legs.
Cherkizovo Group employees have held a volunteer event supported by the Ray Foundation for Helping Homeless Animals. They brought food, medicines and other useful supplies to two Moscow shelters and helped with dog walking.
Cherkizovo Group’s chicken and turkey products have once again been awarded the annual Product of the Year title, with flagship brands Petelinka and Pava-Pava winning two categories of the award.
Cherkizovo Group, Russia's largest meat producer, is taking part in Our Brand, an international food festival in Ufa. The Company showcased its products during a tasting session at its stand.