January 12, 2021


Cherkizovo to create food cluster in Tula region, Russia


Cherkizovo Group plans to create a meat processing cluster in the Tula Region, Russia, with support from the local government.


Investment in the project's initial phase will be a total RUB3 billion (US$40.2 million).


On December 29, Sergey Mikhailov, CEO of Cherkizovo Group, and Alexey Dyumin, Governor of the Tula Region, signed a cooperation agreement with regard to an investment project aimed at developing a local meat processing cluster. The project's initial phase is expected to create 100 new jobs in Tula.


The initiative provides for the expansion of the existing Compass Foods capacities and construction of a new production unit for ready-to-cook products.


Going forward, Cherkizovo Group is considering the construction of a slaughter facility for primary and industrial processing of pork meat and a poultry processing plant. The food cluster construction in the Yefremov District of the Tula Region is expected to be completed by 2025.


 "Cherkizovo is the acknowledged Russian leader in terms of meat processing volumes. We expect its investment project to stimulate the development of a biotechnology cluster in the Tula Region," said Dyumin.


"Moreover, it will make a significant contribution to the economy diversification in the town of Yefremov and help strengthen cooperation with regional businesses. I am confident that, thanks to our joint efforts, the food cluster will become one of the region's most advanced agricultural facilities."


Dyumin also noted that the regional government is willing to provide comprehensive support to Cherkizovo at each project phase.


"The Tula Region is a promising area for Cherkizovo Group's expansion. The local government places special emphasis on the development of the agricultural sector – one of the region's key industries. We anticipate long-term fruitful cooperation with local authorities aimed at creating a large processing cluster to increase the output of high quality meat and poultry products," said Sergey Mikhailov, CEO of Cherkizovo Group. 


Cherkizovo Group completed the acquisition of Cargill's Compass Foods in autumn 2020.


The plant's capacity currently totals 20ktpa of ready-to-cook poultry (nuggets and other products). The bulk of its output goes to McDonald's, a global fast food restaurant chain.


- Cherkizovo