Cherkizovo Group Starts Meat Processing in Kalingrad Region
Cherkizovo Group, one of Russia’s leading integrated and diversified meat producers, has commenced operations at the meat processing plant in the Kaliningrad region, which it acquired in 2010. The first production line is for smoked sausage and has a production capacity of 10 tonnes per day or 300 tonnes per month.
The plant was acquired in September 2010 with the aim of focusing its operations on the production of delicacy meat products. Part of the planned modernisation includes the installation of new equipment manufactured by 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 is $2.9m.
“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,” says Sergey Mikhailov, chief executive of Cherkizovo Group. “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.”
Cherkizovo Group has been restructuring its meat processing business to reduce 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,” he adds.