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alt image

Russia: Cherkizovo Group Acquires Poultry Facility

30 september 2010
 

Russian poultry producer OJSC Cherkizovo Group has today announced the acquisition of the Zarechnaya poultry facility.  

Sergey Mikhailov, CEO of Cherkizovo Group, said: "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.”  

The company said it has agreed to acquire a 100% controlling interest in the Zarechnaya poultry facility, for a total consideration of USD5.2 million.  The company added: “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 live-weight tonnes, thus enhancing the poultry rearing capacities in the Penza cluster, and meeting the slaughter facility's hourly capacity of 14,000 heads.” 

About Cherkizovo Group 

Cherkizovo Group OJSC is one of the largest Russian meat producers. Its business is organised into three segments: poultry production (four full-cycle poultry production clusters), pork production (five pork production complexes), and meat processing (six meat processing plants). In addition, the Group produces its own fodder (2 fodder mills), and sells its products through its own three trading houses. Cherkizovo Group enjoys dominant market positions, and its portfolio includes leading brands, such as Petelinka, Chicken Kingdom, Cherkizovsky, and Five Stars. 

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