Cherkizovo's Second Pork Breeding Module Opens

RUSSIA - Cherkizovo Group OJSC, one of Russia's leading integrated and diversified meat producers, has opened the second and final module at the Group's new state-of-the-art pork breeding facility in the Tambov region.
calendar icon 24 September 2008
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The opening of the module is the final phase in the completion of the Group's Tambov facility.

Tambov has been established as the Group's second major pork production facility.

The Tambov pork complex consists of two modules with a total completed capacity to breed more than 200,000 pigs per year.

This is anticipated to translate into 12,500 tonnes of live weight per year in each module.

The first Tambov module, commissioned in June 2008, will be operating at full capacity by mid 2009. The second module is expected to reach full capacity by the second half of 2009.

The opening of the second Tambov facility is a major step for the Group in strengthening its presence in pork breeding and production.

The opening follows the establishment of the Group's largest pork production facility, located in Lipetsk region. The Lipetsk facility comprises four modules, each of which has an expected capacity of 12,500 tonnes of live weight per year in each module.

After Lipetsk and Tambov facilities are operating at full capacity, they will produce more than 75,000 tonnes of live weight which is expected by the end of 2009.

The Group believes that the Lipetsk and Tambov complexes are the most advanced pork production facilities in Russia, and are on a par with the very best worldwide.

Sergey Mikhailov, CEO of Cherkizovo Group, said: "We are delighted to announce the opening of the second module at our Tambov production facility. This is a significant development for Cherkizovo's pork division, as the opening marks the successful completion of the Group's two major pork facility projects in Lipetsk and Tambov.

"We hope that the Group's leading pork facilities, which meet the highest standard of technological and veterinary standards, will be an industry leading example as to how best to manage pork facilities in Russia.

"We are confident that the significant investment made in expanding our pork division organically will enable us to drive efficiencies and improve our performance and margins.

"The development is in line with our strategy to aggressively increase the scale of the Group's pork production in Russia."

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