July 28, 2006

Russia's Cherkizovo to build US$80 million pig plant in Tambov

Russian meat producer OAO Cherkizovo Group Thursday (Jul 27) said it had chosen Tambov as the site for a new US$80 million pig plant.

The facility will have an annual capacity of 100,000 head of swine and should come on line in January or February next year. The first products should be ready for sale by the end of next year.

Tambov, a city located around 400 kilometres south-east of Moscow, was chosen over Penza.

"The Tambov plant will be the first of several modelled on our European-standard facility in Lipetsk. The others will be located in other Russian regions suitable for pig farming," Cherkizovo's Chairman Igor Babeyav said in a statement.

Cherkizovo has said it intends to invest US$132 million in the high-margin pork business in 2006, and a further US$107 million next year.

Its facility in Lipetsk in central Russia has an annual capacity of 400,000 head of swine.

Cherkizovo, which also has chicken and meat processing businesses, floated almost 30 percent of its shares in London in May, raising US$250 million.