Investing for the future

September 4, 2012

Cherkizovo implements a major project in the Dankovski area.

 The Dankovski area has significantly progressed.. Over seven months,  investment in fixed assets increased by 1.4 times, houses built increased by  9%  over the same period of last year.  11 trade companies opened and 13 consumer cooperatives registered in the area. As a result of the procurement, turnover as a whole increased by 1.7 times. Purchases of meat by  household owners increased almost 1.4 times and milk 3.2 times.  It is important to note that the average wage in the region increased by 22.6%.

These figures were presented at a meeting last week held by  Dankov Deputy Head of the Regional Administration, Vyacheslav Scheglevatyh. The conversation focused on the socio-economic development of the district. According to the vice-governor, success of the Dankov’s people could be significant, if more large-scale projects in the special economic zone were rapidly put into practice.

Dankov and  agriculture.

The small pause was taken in particular by the investors who planned to build in the area of the Dankovski Grain processing plant. The delay is largely due to Russia's accession to the WTO. "Investors need to assess their prospects for the project in the new economic environment," said Head of the Regional Department of Agriculture, Oleg Dolgov.

But OJSC Cherkizovo didn’t need time for reflection. After Russia's accession to the WTO, the company has adjusted its plans to substantially increase investment in the Lipetsk region. This was announced at a meeting of the Executive Director of Lipetskmyasoprom, Andrey Kovalev. "In the area of ??Dankov placed four loudspeakers, which will produce up to a million pigs a year, he said. There is  ongoing preparatory work and construction will begin at the  pig farms in the first quarter of 2013. Cherkizovo uses the most advanced technology. Today we have the best specialists from the UK, Brazil and the United States. Our project will create 500 jobs in primary production and 300 in support. People will work with ultra modern technological equipment andeach employee will be trained in 3-6 months on the basis of vocational school № 9 ". Commenting on  the cost of preparing cattle to take over their budgets:"These are perfect conditions for investors in the Lipetsk region. This  Cherkizovo Group project is of great importance to the regional economy” Vyacheslav Scheglevatyh said “He will receive the full support of the administration of the region."

It is also important that the first steps in the development of the SEZ has made.. On its territory, the Deputy |Head of the District Administration Andrey Demidov, began excavation which within  a few months will be to build a plant for the production of fuel pellets. It is expected that next year the company will reach its design capacity. It will produce 9700 tons of pellets per year. The company Dreamwood has good prospects which only became a member of the SEZ Dankov in August. It is a subsidiary of Cherkizovo Group, which will produce wooden houses built for pig farms in the region.

As stressed by Vyacheslav Scheglevatyh, it is necessary not only to create new production, but also to support existing businesses and, above all, a strong recoveryfrom a prolonged crisis. Recently, the regional administration has made a serious effort with the  Dankovski chemical plant which was included in the Federal Target Program to ensure stable orders from the government. It is no coincidence the vice-governor gave the floor to General Director Nikolai Tarasov. He reported that on September 15, the plant will begin production of special gaskets for oil that can withstand low temperatures, on the order of Transneft. The plant also has good prospects for a defense order. "We must not miss this chance”said the vice-governor, “Administration of the area is ready to force full support"

Summing up the conversation, Vyacheslav Scheglevatyh set several goals.There is a  eed to organize the collection of milk, covering every single town. "This issue is of great social significance” said Vyacheslav Mikhailovich, “ selling milk allows owners of private holdings to have a stable income." Another important task is to organise  effective work with investors who are prepared to invest in the economy of the region. "We need the regional offices, the company and the district administration to have clearly divided  powers in this area” concluded Vyacheslav Scheglevatyh. “Only a concerted and coordinated effort of all stakeholders will allow us to expect a great success."