OREANDA-NEWS. February 01, 2013. Vasily Bochkarev, the governor of the Penza region and Igor Babaev, Chairman of Cherkizovo’s Board of Directors, visited Cherkizovo Group facilities in Penza. The delegation visited the reconstructed Zarechnaya integrated poultry farm in the Bessonov district as well as the Penzensky meat and poultry processing plant in Penza, reported the press-centre of Cherkizovo Group.

The founder of Cherkizovo Group discussed existing investments in the region and future investment plans with the Mr. Bochkarev. Over the past eight years, Cherkizovo Group has invested 15 billion roubles in the Penza region; making Cherkizovo Group the largest agro-industrial investor in the area employing more than 4,500 residents.

Penza is a key poultry production region for Cherkizovo, accounting for almost 40% of poultry meat produced by the Group (Cherkizovo is the second largest poultry producer in Russia). Cherkizovo has invested over 9.5 billion roubles directly in the poultry industry in the Penza region. These funds were allocated for reconstruction, sanitary inspection rooms, more bird houses, landscaping, road construction, and new equipment from leading European manufacturers, as well as the construction of a hatchery, feed mill and a slaughter and processing complex. As a result, the poultry production capacity has increased fourfold and the production of hatching eggs to 130 million units per year.

The Zarechnaya poultry plant, acquired by the Group in 2010, is now an integrated poultry farm following an upgrade and reconstuction program in which 53 bird houses have been reconstructed with 1.7 million bird places and a slaughter house.

Cherkizovo Group has also invested in the Pork segment in the region, with the waste plant RAO PZK Ltd and the Bolshevik facility, which is under reconstruction. Upon completion, the total pork production capacity in the Penza region will exceed 20,000 tonnes of live weight per year. Cherkizovo has also proposed the creation of a modern pig farm with a capacity of 28,000 tonnes of live weight per year, which can be based in the Penza, Kamensky and Issinsky areas.

There are also two Cherkizovo Group feed mills at Penza: Mikhaylovsky KKZ and PKHP, with a combined capacity of 560,000 tonnes of fodder per year. Last year, with an investment of 500 million roubles, the Group completed the construction of an elevator with 100,000 tonnes of storage in the Kamenka region. With these new assets and vertical integration, Cherkizovo has secured the supply of poultry and pigs to their complexes.

The management of the Penza region and the visitors from Moscow were interested in the new project to expand the slaughter capacity at the Penzensky meat and poultry processing plant. Cherkizovo had already invested more than 240 million roubles in the reconstruction and development of the plant, but the new project which is estimated to be worth 500 million roubles will break the previous record. Upon completion of the project, the volume of simultaneous storage of meat and raw meat will increase threefold and the capacity for live animals will increase twofold.

The head of the region expressed his appreciation for the activities and ongoing support of Cherkizovo Group: "Cherkizovo has contributed significantly to the GDP of our region. The Penza region has become one of the country’s largest centers for the production of poultry meat. We strive to create the best conditions for investors who are interested in agriculture and regional programs to support the sector. From the example set by Cherkizovo, we see future potential for partnerships with big businesses and regional authorities. The projects, which Igor Babaev said today, will create new jobs and increase revenue for the region."

"We have been working in the Penza region for many years and are proud of the results we have achieved" said Igor Babaev, Chairman of the Board of Directors at Cherkizovo Group. "Firstly, I would point out a major project to increase poultry production capacity. Thanks to the investment program, implemented from 2009 — 2012, we have been able to double the capacity of the Penza clusters, from 61,000 to 140,000 tonnes of finished products per year. The Penza region has huge potential for agricultural development and the production of meat products and we are pleased to have this opportunity to realize our ambitious plans in the region."