Lipetsk, Russia – 20 July 2017 – Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia, today announces plans to construct turkey fattening sites in Lipetsk region.
"Cherkizovo Group is a long-established and strategically important partner of Lipetsk region. The Group is building agro-industrial facilities using the most advanced technologies available. The group’s products find markets in our region as well as in neighbouring ones. The new projects will provide an opportunity to continue the active development of agriculture in the region", said Oleg Korolev, Head of the Lipetsk Region Administration.
Today there are plans for the construction of three turkey-fattening sites in Chaplyginsky district requiring 1,000ha of land. Investment in the project will amount to RUB 1.7 billion. In total, more than 30 jobs will be created at the fattening sites. The project is slated for completion in 2018-2019. The new turkey-fattening sites will be located within 50 km of the poultry-processing complex in the Tambov region, which is very convenient in terms of logistics and production efficiency.
"We have been working in Lipetsk region for more than ten years, being the major investor in agriculture in the region and we intend to develop close cooperation, – said Igor Babaev, founder of Cherkizovo Group. “And the Group’s most important investment projects are now in Lipetsk region. It is our driver. First on the list is turkey, several poultry facilities, including the construction of rearing and parent stock facilities (RUB 3.5 billion) along with pork facilities. We are ready to start investments immediately; all that remains is to settle outstanding questions regarding land. And, according to our estimates, total planned investments in the region will amount to RUB 20 billion over the next several years, not counting the turkey projects".
The construction of new pork weaning and fattening sites was also discussed during the meeting. At present, seven fattening sitesare under construction is the region: the first two have been commissioned while the third one will be ready in August, with the remaining four planned for year-end. Additionally, the potential construction of a pork slaughterhouse with installed capacity of 600 heads per hour, representing a capital investment of up to RUB 8 billion, was discussed. Construction of the slaughterhouse is directly linked to the expansion of the pork production in the region, and requires the construction of railways and a feed mill.