Cherkizovo Constructs New Pig Farm in Lipetsk
As part of Cherkizovo Group’s dynamic development strategy of its Pork segment, the Company has now started the construction of a new greenfield pork farm in the Lipetsk region of Central Russia.
The new best-in-class integrated multi-site complex will house 4,800 sows and will have an estimated full capacity of 12,500 tonnes of live-weight pork per year. The complex will include separate breeding, rearing and fattening facilities, equipped with state-of-the art technology. The farms will be populated with our own parent stock, using sows from the high yielding and efficient pork breed, DanBred.
The launch of breeding facilities at the new Lipetsk site is scheduled for August 2011, with the rearing and fattening facilities expected to be operational from October 2011. It is expected that the new complex will operate at full capacity in 2013.
The total consideration for the planned investments is expected to be approximately US$50 million, of which approximately 20% will be funded by Cherkizovo and the remaining approximately 80% by bank loans.
Taking into account the recently announced Greenfield construction of pork complexes in the Tambov and Voronezh regions, the Group's overall pork production capacity will total an estimated 153,000 tonnes per year by 2013. Additionally, the new site will be closely located to Cherkizovo Group's existing pork production operations, and the Company’s high quality fodder production plant in the Lipetsk region. This proximity is expected to contribute to substantial cost and scale synergies within the high-margin Pork division.
Cherkizovo would like to thank the Lipetsk regional administration for their co-operation in undertaking infrastructure projects to support the facility, and their subsidy support on interest rates and tax benefits, which have facilitated the initiation of work on this site.
Sergey Mikhailov, CEO of Cherkizovo Group, commented: "We are excited to have this project underway; it is a significant step in our strategy to prioritise the development of our high-margin Pork business. We are confident that our investment in these greenfield projects will enable us to further increase efficiency, the performance of the segment and the overall results of the Group. This additional capacity will also help strengthen our position in the highly fragmented Russian pork market and bring operational benefits to our increasingly efficient Pork segment."
Other news
Petelinka takes to the ice on the country’s main skating rink!
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 employees join efforts to support stray animal shelters in Moscow
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.
Petelinka and Pava-Pava win Product of the Year awards
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 unveils its products at international exhibition in Ufa
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.