Cherkizovo Group agrees to invest over RUB 80 billion at the SPIEF

June 8, 2021

St Petersburg, Russia – June 8 – At the St Petersburg International Economic Forum (SPIEF) Cherkizovo Group (MOEX: GCHE), Russia’s largest meat producer, signed agreements with the leaders of the Altai Territory and the Tula and Lipetsk regions to invest over RUB 80 billion in expanding production.

“We are pleased to announce new large-scale investments in our capacities. The agreements signed at the forum will kick off projects set to boost pork and poultry production in the next 2–3 years and strengthen our leadership in the domestic meat industry,” said Sergey Mikhailov, CEO of Cherkizovo Group.

The Company will invest the most – more than RUB 55 billion – in new projects in the Tula Region. June 3 saw two agreements signed with the region’s Governor Alexey Dyumin to develop the meat-processing cluster in the Yefremov Territory of Advanced Social and Economic Development. The first agreement provides for the construction of a facility for slaughtering, storage, and processing of pork, with a capacity of 4.2 million heads per year. Investments in this project, for which Gazprombank is a financial partner, will be up to RUB 48 billion. Under the second agreement, Cherkizovo will build a plant for broiler slaughtering and primary and further processing in 2023–2025 as part of the meat-processing cluster in the Yefremov District of the Tula Region. The project is estimated to cost up to RUB 8.4 billion.

The new sites in the Tula Region will create 3,200 jobs (Cherkizovo now has about 1,000 employees there).

Cherkizovo Group’s agreement with the head of the Lipetsk Region Administration Igor Artamonov envisages projects worth RUB 22.5 billion. From these funds, the Company will spend RUB 7.5 billion on the construction of six poultry farms for broiler production, and RUB 8 billion will go to the construction of four pig farms. A 130 tonnes per hour feed mill and the second phase of the silo with a one-time grain storage capacity of 220,000 tonnes will also be built in the Lipetsk Region. Investments in these projects will amount to RUB 3.5 billion and RUB 2 billion, respectively.

The launch of the new production facilities and related infrastructure will create more than 400 new jobs in the region. Today, 3,900 people work at Cherkizovo Group’s local sites. The Company's investments in the Lipetsk Region in 2020 alone totalled RUB 2.2 billion.

Sergey Mikhailov signed an agreement with the Governor of the Altai Territory Viktor Tomenko to expand a poultry cluster. Set to increase Altai Broiler’s production capacity in the region between 2021 and 2025, the project will see RUB 2.6 billion in investments and create more than 200 new jobs (the Сompany now employs 1,700 Altai residents).