Thursday, February 27, 2014

Cherkizovo Group, Grupo Fuertes secure financing for new turkey plant in Russia

    Cherkizovo Group, one of Russia's leading food manufacturers, and Grupo Fuertes, a leading Spanish producer of turkey meat, has plans for a new turkey meat processing and production plant in Russia's Tambov region. Financing for the project has been approved, with an arrangement made with Sberbank CIB.
    The total amount of investment in the Tambov Turkey project is RUB7.5 billion (US$210 million), with over RUB3 billion (US$84 million) jointly provided by Grupo Fuertes and Cherkizovo Group. The output of the project is estimated at 40,000 metric tons of turkey meat per year. The launch date of the plant is 2015.
    Tambov Turkey is a landmark project because it involves Grupo Fuertes, a leading European producer of turkey meat that possesses many years of experience in creating similar high-tech production facilities. The significant investment in this project is a testament to the development prospects of the Russian turkey meat market on the whole and foreign investors' interest in high-tech Russian agriculture industry projects. This project to construct facilities for processing and producing turkey meat in the Tambov region will help increase the volume of production of high-quality, nutritious poultry and make it more accessible to the Russian population.
    Sergei Mikhailov, CEO of Cherkizovo Group, commented: "This is Cherkizovo Group's first international project which is being implemented in partnership with one of the leaders of the European poultry market. We are certain that the unique combination of European turkey farming experience and our Russian market experience - Cherkizovo Group owns the country's largest and most successful frozen poultry brands such as Petelinka, Kurinoe Tsarstvo and Mosselprom - will enable us to execute our Tambov region project on time and go on to occupy a leading position on the dynamically growing Russian turkey meat market. Cooperation with a reliable financial partner is essential if we want accomplish these goals. We are glad that Sberbank, with whom we have already carried out several successful projects, is that partner."
    Kirill Polishkin, acting head of the Client Management Department at Sberbank CIB, said the following about the deal: "We highly value our long and productive partnership with Cherkizovo Group. This project is being implemented according to the principles of project financing. It combines the in-depth expertise possessed by international producer Grupo Fuertes, Cherkizovo Group's strong position on the Russian meat market and Sberbank of Russia's experience in financing long-term agriculture industry projects. We are certain of the success of Tambov Turkey and intend to continue working on large, ambitious projects with our partners."

No comments:

Post a Comment