Cherkizovo Group has commissioned new grain storage facilities in Kamensky District, Penza Region, with overall capacity of 100,000 tonnes

July 16, 2014

Upon the facilities commissioning, Cherkizovo's overall grain storage capacity increased to 700,000 tonnes. The Company invested more than 560 million roubles in the Kamenka project, including VAT, and created about 50 new jobs with an average wage 30% higher than the average wage in the region. The Kamenka grain warehouses are installed outdoors. They have a rustproof galvanized coating and can be used in all weather conditions without the need for constructing additional protective structures.

Grain silos of 9 containers with the capacity of 12 tonnes each were also installed during modernization of the Mikhailovsky Fodder Factory, which includes the Kamenka grain storage facilities. Vertical grain storage will ensure long-term preservation, and the condition of the feed grain and air temperature will be continuously monitored. The facility's production capacity exceeds 250,000 tonnes of feed per year.

The high-tech equipment installed at the plant fully meets energy efficiency standards and requires minimum maintenance costs during operation. All processes at the facilities are automated and controlled remotely using advanced computer systems.

The official opening of the new grain storage facilities on a site near the Mikhailovsky Fodder Factory was attended by Penza Region Governor Vasily Bochkaryov and Chairman of Cherkizovo Group Board of Directors Igor Babaev.

Mr. Bochkaryov emphasized in his speech the importance of the region's long-term partnership with Cherkizovo Group, which has been both productive and mutually beneficial. "A large number of agriculture-related projects are being implemented in our region, since we create an attractive investment climate for business. We hope that our horizons for cooperation will continue to expand, and that the company's production levels will increase year by year. Best of luck to all of the Group's employees."

In his welcoming remarks, Mr. Babaev explained why completing the project had a special meaning for Cherkizovo Group: "We have been operating in Penza Region for 15 years. During this time, the company has built many large facilities, including several completely new modern livestock complexes; and production capacities at the Vasilievsky Poultry Factory have increased to 130,000 tonnes of finished products per year. The opening of Kamenka gives us confidence in the safety and quality of our grain, and is also an important step toward bringing our grain storage capacity to 1 million tonnes, making our business more stable and efficient."