June 24, 2011


Cherkizovo Group starts operation at Kaliningrad region



OJSC Cherkizovo Group, one of Russia's major integrated and diversified meat producers, declared that operations at the meat processing plant in the Kaliningrad area have begun.


The first production line for smoked sausages at the recently acquired meat processing plant in the Kaliningrad region was launched. The plant was acquired in September 2010 with an aim to focus its operations on the production of delicacy meat products.


Part of the planned modernisation included the installation of new equipment manufactured by the world-renowned Italian company, Travaglini. This newly renovated meat plant will produce smoked sausages, using the best Russian and European technologies. Investment in the first stage of the project totals approximately US$2.9 million and the line launched currently has a production capacity of 10 tonnes per day or 300 tonnes per month.


Sergey Mikhailov, CEO of Cherkizovo Group said, "From 2010, we have begun to see stable profitability in our meat processing segment, which is closely linked to our successful strategy of restructuring this business and reducing costs. Last year's acquisition of the meat processing plant in the Kaliningrad region was another significant step towards increasing efficiency and securing a strong resource base for this segment. Today, we are very pleased to announce the opening of the production line, which represents the start of a "new life" for the plant. We will continue the modernisation process at the site and by the beginning of 2012, we plan to launch a second production line for delicacy products and hams. One of the most important benefits of this site is its location in the free economic zone, where it receives special customs preferences. This advantageous position will enable Cherkizovo to leverage opportunities for the effective distribution of value added products in the European part of Russia".

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