October 28, 2013

Russia's Cherkizovo Group announced the successful completion of a RUB4.5 billion (US$141.5 million) project to double capacity in the Penza poultry cluster (Vasilyevskaya Poultry Factory).

The project boosted production capacity at the Vasilyevskaya Poultry Factory from 60,000 to 125,000 tonnes live weight per year, making Penza Region one of the country's largest poultry producers.

The project involved the construction of a number of large facilities, including one of Europe's largest hatcheries with capacity of more than 105 million incubation eggs annually, and the Vertunovka parent stock site with capacity of nearly 60 million incubation eggs/year. Poultry facilities in Kuznetsky and Bessonovsky Districts of Penza Region were also purchased and modernised.

By year end of 2013, the Vasilyevskaya Poultry Factory will have produced nearly 120 million incubation eggs and more than 55.7 million broilers.

"Cherkizovo Group has made a major contribution to replacing imports on the poultry meat market," the company's CEO Sergei Mikhailov said. "Our investments in doubling capacity in the Penza poultry cluster were part of this long-term process. We have not only increased output, but also created new jobs and achieved higher performance indicators, fodder conversion rates, stock liveability, and biological security."

Deputy Governor of Penza Region Vyacheslav Orel said, "Effective teamwork of the regional Administration and Cherkizovo Group in Penza Region has resulted in the start-up of new industrial facilities, modernisation of a number of agro-industrial complexes, creation of direct and indirect jobs, and development of logistics infrastructure that integrates grain producers and processed meat product manufacturers. The government is committed to creating a favourable investment climate in Penza Region and is providing comprehensive support for companies investing in the agricultural sector."