April 16, 2013

Cherkizovo Group completes acquisition of Dankov meat processing plant

Cherkizovo Group has finalised the acquisition of the Dankov meat processing plant for the sum of RUB38.5 million (US$1.22 million).

The plant is located in a town of Dankov, in the Lipetsk region, close to a number of existing Cherkizovo pork facilities, and approximately 300 kilometres south of Moscow. Established in 1936, it specialises in cattle and pig slaughtering and boning, meat freezing and production of sausages.

Production capacity of the slaughterhouse is approximately 500 heads per shift, while the processing site produces 3.5 tonnes per day. The plant also has a 600-tonne meat cold storage facility. Cherkizovo Group plans to increase the capacity of the slaughtering facility at the newly acquired site.

"The acquisition of the Dankov meat processing plant fits in perfectly with the company's strategy for long-term growth through organic business development and market consolidation," said Sergei Mikhailov, CEO of Cherkizovo Group.

"The main advantages of the facility are the fact that it has its own slaughtering capacity and its convenient location not far from the Group's pork facilities in the Central Russia. This new asset will enable us to increase the operational efficiency and to maintain our competitive advantage in the pork segment even dealing with the challenging market environment."