September 16, 2009
German meat firm to go ahead with Russian investment plan
Tonnies Fleisch, a German meat company, has confirmed its commitment in investing EUR300-EUR400 million into the production and processing of pork in Russia's Voronezh region.
The investment agreement between the company and the region was reached in April 2009, but some analysts believed that the plan is likely to be aborted due to the financial crisis.
This announcement, however, has swept aside all concerns.
The company said the total capacity of its pig farms in the region will exceed two million hogs per year and a forage base would be established.
Clemens Tennies, owner of the company, said once the capacity goes close to two million hogs per year, it will be the time to consider the construction of a processing enterprise in the region with a cost of EUR400 million.
Tonnies Fleisch specialises in slaughtering and meat processing. The company produces more than 180,000 tonnes of sausages per year, including six billion frankfurters.
US$1 = EUR0.681153 (Sep 16)
