OREANDA-NEWS. June 01, 2009.  Russian meat producer Cherkizovo intends to build a RUB 45.7 bn facility in the Lipetsk region to breed, slaughter and process poultry and pigs, the company reported. Cherkizovo, the Russian Agricultural Ministry and the Lipetsk regional administration entered into a trilateral agreement on establishing the business, Cherkizovo PR director Irina Ostryakova said.

The facility’s scheduled production capacity will be 230,000 tons of poultry meat and 250,000 tons of pork a year. The project’s investment cycle will be 6.5 years. As estimated by Cherkizovo Group, the project’s payback period will be nine years and four months. To finance the facility’s construction Cherkizovo Group plans to raise long-term subordinated loans, Ostryakova added declining to disclose any details. Cherkizovo is currently holding negotiations over borrowing funds for this project with Rosselkhozbank, a source close to the company said.