March 27, 2008

 

Cherkizovo completes third module at pig facility

 

Press Release

 

 

Cherkizovo Group has announced the completed construction of the third module at its Lipetskmyasoprom pig facility and the opening of its new fodder mill near the facility, both of which are in the Lipetsk region.

 

The third module is expected to reach full capacity in 2009, which will provide an extra 12,500 tonnes of live weight volume at the site, giving it a total production capacity of approximately 37,500 tonnes of live weight per year across all three completed modules.

 

The Group expects the fourth, and last, module at Lipetskmyasoprom to be constructed and become operational by the end of 2008.

 

On completion, each module will house 4,800 sows with an expected breeding capacity of about 100,000 pigs per year (12,500 tonnes of live weight), providing a total capacity across all four modules at Lipetskmyasoprom of approximately 50,000 tonnes of live weight per year.

 

The Lipetsk facility is provided with a highly productive breed of pigs bought from DanBred, a leading European producer.

 

 

New Fodder Mill
 

The Group has also opened its new fodder facility including fodder mill and mill grain elevator in the Lipetsk region close to the pig farm site. Cherkizovo's new fodder mill will fully supply fodder for the Lipetskmyasoprom facility. The mill's capacity constitutes more than 180,000 tonnes of fodder per year, or, almost 30 tonnes per hour.

 

The new mill grain elevator is already in operation with a current capacity of 100,000 tonnes of grain on site per year.

 

The two openings are an important landmark for the Cherkizovo Group, said Sergey Mikhailov, CEO of Cherkizovo Group.

 

"The pig farm in the Lipetsk region remains on track to deliver a total of 50,000 tonnes a year once the fourth module is running at full capacity, which is expected in 2009, helping to drive revenues in our Pork Division. At the same time the new fodder mill will provide feed into the site allowing us to control the quality of our end product for consumers, whilst also driving operational efficiency and allowing us to maintain tight cost control," said Mikhailov.

 

Cherkizovo Group is a leading Russian vertically integrated agro-industrial company. Its operations spread over a full production cycle from feed production and breeding to meat processing and distribution.