Cherkizovo to create a food cluster in the Tula Region

December 30, 2020

Tula, Russia – December 29, 2020 – Cherkizovo Group, Russia's largest meat producer, intends to create a meat processing cluster in the Tula Region with support from the local government. Investment in the project’s initial phase will total RUB 3 bn.

On December 29, 2020, Sergey Mikhailov, CEO of Cherkizovo Group, and Alexey Dyumin, Governor of the Tula Region, signed a cooperation agreement with regard to an investment project aimed at developing a local meat processing cluster. The project’s initial phase is expected to draw RUB 3 bn in investments and create 100 new jobs in the region.

The initiative provides for the expansion of the existing Compass Foods capacities and construction of a new production unit for ready-to-cook products. Going forward, Cherkizovo Group is considering the construction of a slaughter facility for primary and industrial processing of pork meat, and a poultry processing plant. The food cluster construction in the Yefremov District of the Tula Region is expected to be completed by 2025.

 “Cherkizovo is the acknowledged Russian leader in terms of meat processing volumes. We expect its investment project to stimulate the development of a biotechnology cluster in the Tula Region. Moreover, it will make a significant contribution to the economy diversification in the town of Yefremov and help strengthen cooperation with regional businesses. I am confident that, thanks to our joint efforts, the food cluster will become one of the region’s most advanced agricultural facilities,” said Alexey Dyumin, Governor of the Tula Region. He also noted that the regional government is willing to provide comprehensive support to the Company at each project phase.

“The Tula Region is a promising area for Cherkizovo Group’s expansion. The local government places special emphasis on the development of the agricultural sector – one of the region’s key industries. We anticipate long-term fruitful cooperation with local authorities aimed at creating a large processing cluster to increase the output of high quality meat and poultry products,” commented Sergey Mikhailov, CEO of Cherkizovo Group.  

Cherkizovo Group completed the acquisition of Cargill’s Compass Foods in autumn 2020. The plant’s capacity currently totals 20 ktpa of ready-to-cook poultry (nuggets and other products). The bulk of its output goes to McDonald’s, a global fast food restaurant chain. As was communicated earlier, the acquisition was set to greatly enhance Cherkizovo’s presence with food service clientele.  

Cherkizovo’s other assets in the region include a ca. 30 ktpa poultry production facility (Kurinoe Tsarstvo, Uzlovaya branch) operated by the Group since 2011.