May 25, 2006

Russian meat processor cranks up production with huge investments

Cherkizovo Group, one of the largest meat processors in Russia, is to crank up its pork production with a US$132 million investment programme this year and US$107 million next year. A further US$20 million is allocated to poultry production.

Cherkizovo Group controls several meat plants in Russia.

The company gained a net profit of US$17.1 million in 2005 compared with just US$1.1 million in 2004 and a US$2.9 million loss in 2003.

The company raised nearly US$250 million in its IPO in the London stock exchange earlier this month.

Last year, the Cherkizovo Group saw sales of US$546 million.