June 7, 2021
Cherkizovo to invest in new production facilities in Tula Region, Russia


During the St. Petersburg International Economic Forum (SPIEF), Russian President Vladimir Putin announced an agreement between Cherkizovo Group and the Tula Region, Russia, to launch a meat-processing cluster.


By 2025, Cherkizovo plans to invest more than ₽55 billion (US$754.3 million) in new production facilities in the region.


Cherkizovo Group will build Russia's largest meat processing cluster in the Tula Region that will include slaughterhouse, pork storage and processing facility with a capacity of 4.2 million heads per year. Investments in the project totaled ₽48 billion (US$658.2 million), with Gazprombank providing financial support.


The agreement was signed by Sergey Mikhailov, Cherkizovo Group's chief executive officer, Alexey Dyumin, Governor of the Tula Region, and Alexey Matveev, deputy chairman of the management board of Gazprombank.


Cherkizovo Group and the government of the Tula Region also entered into an investment agreement to build a facility for broiler slaughtering, and primary and further processing in 2023–2025. The project is estimated to cost ₽8.4 billion (US$115.2 million).


Over the last year, Cherkizovo Group invested ₽2.9 billion (US$39.8 million) in the Tula Region, with most of the investments allocated for the acquisition of Compass Foods, a poultry processing facility. The group is going to invest an additional ₽3 billion (US$41.1 million) in expanding the facility capacities.


"In the coming years, Cherkizovo Group is going to significantly scale up its meat production volumes, relying to a great extent on its new projects in the Tula Region, which makes it a region of strategic importance for the company's business," said Mikhailov. "Our investments show how serious we are about these plans. Under the two agreements signed during the forum, we are going to invest ₽56.4 billion (US$772.9 million) – more than 80% of all our investments over the last five or six years. I would like to express my gratitude to the government of the Tula Region represented by Mr. Dyumin, and our financial partner, Gazprombank, whose support will help us implement these plans."


"The signed agreements envisage the construction of a meat processing cluster that will add 3,200 new jobs. The project will be implemented in the Yefremov Territory of Advanced Social and Economic Development. It is going to be Russia's largest meat processing cluster," said Dyumin.


Cherkizovo Group's facilities in the Tula region employ around 1,000 people.


Under the agreements, the group, supported by the region's government, will build housing and social infrastructures for its local employees.


- Cherkizovo