Grupo Fuertes and Cherkizovo Group Will Invest 7.5 Billion Roubles in Construction of Meat Processing Complex

Spanish company Grupo Fuertes and Cherkizovo Group OJSC will invest 7.5 billion roubles in construction of a turkey meat processing and production complex in Tambov Region, according to a statement by Sberbank CIB, which arranged financing from Sberbank. Grupo Fuertes and Cherkizovo Group will jointly invest more than 3 billion roubles of their own funds.

Spanish company Grupo Fuertes and Cherkizovo Group OJSC will invest 7.5 billion roubles in construction of a turkey meat processing and production complex in Tambov Region, according to a statement by Sberbank CIB, which arranged financing from Sberbank. Grupo Fuertes and Cherkizovo Group will jointly invest more than 3 billion roubles of their own funds.

Capacity of the Tambov Turkey project is estimated at 40,000 tonnes of turkey meat per year, with start-up scheduled for 2015.

“This is Cherkizovo Group’s first international project implemented in partnership with one of the leaders on the European poultry market,” Cherkizovo CEO Sergei Mikhailov said.

Grupo Fuertes and Cherkizovo Group announced the formation of a joint venture for turkey production on May 14, 2012. A week later, the Federal Antimonopoly Service approved a joint application by Cherkizovo Group and Grupo Fuertes to acquire shares of 49.99% and 50%, respectively, in the authorized capital of Tambov Turkey LLC through contributing funds to increase it.

Cherkizovo Group OJSC unites two groups of facilities — AIC Cherkizovsky and AIC Mikhailovsky — into one holding. The Group includes 6 meat processing plants, 7 poultry production and 14 pork production complexes, 6 feed mills, grain storage facilities with the total capacity of more than 500,000 tonnes, and more than 100,000 hectares of agricultural land. The company is constructing an agroindustrial complex in Lipetsk Region at a cost of about 20 billion roubles. Cherkizovo Group shares are quoted on the London and Moscow Stock Exchanges. The company’s net profit according to US GAAP for the nine months of 2013 decreased to $23.1 billion, or by 86% of the figure for the same period in 2012. Revenue reached $1.195 billion in the reporting period, or 5% more than in the previous year.