Cherkizovo Group may invest up to RUB 3 billion in Altai Territory’s agricultural industry

June 10, 2019

St Petersburg, Russia – 7 June 2019 – Sergey Mikhailov, CEO of Cherkizovo Group (MOEX: GCHE), and Viktor Tomenko, Governor of the Altai Territory, signed agreement to expand partnership.

The parties pledged to invest joint efforts in developing the region’s agricultural industry with a focus on poultry farming, pig breeding, and food production.

Given the parties’ commitment to large-scale investment projects in the region's agriculture, the sector's high growth potential, and Altai’s favorable economic environment and location, Cherkizovo is planning major investment in poultry farming to bring the region's production capacities to 100,000 tonnes per year. Under the project, Cherkizovo is set to build two new finisher sites and a grain elevator boasting a storage capacity of 30,000–60,000 tonnes at a time. On top of that, the Company will refurbish an incubator, a feed mill, and a poultry processing plant. With investments potentially totaling as much as RUB 3 billion, the project is expected to create up to 100 new jobs.

The No. 1 poultry producer in the Altai Territory, Altaisky Broiler is also among the largest poultry producing companies in the Siberian Federal District. It is a state-of-the-art poultry production facility comprising a hatchery, a feed mill, four fattening sites, a slaughterhouse, and a meat packing plant in Biysk. At the end of 2018, Cherkizovo Group acquired Altaisky Broiler to expand into the Siberian Federal District and further consolidate its positions in the domestic poultry market.

To deliver on the production expansion plans, the Group will need the region’s support for allocation of land, infrastructure development, and other assistance. The regional government’s support will be instrumental in ensuring a successful and expedited implementation of the project to boost Altaisky Broiler’s capacity to 100,000 tonnes per year.