GRUPPA CHERKIZOVO OAO 
By OJSC Cherkizovo Group has completed the construction of three Greenfield pork farms located in the Voronezh, Lipetsk and Tambov regions. The total capacity of the three complexes amounts to 37,500 tonnes of live weight of pork per year.
The construction of the pork complexes began in 2010 and in 2011 the first breeding, rearing and fattening facilities were launched. Total investment in the project has exceeded 4 billion roubles.
The construction of the complex was carried out in strict accordance with European standards using only high quality materials and the highest level of veterinary and biological security.
All of the pork farms have been made as integrated modules for 4800 sows, each consisting of several separate buildings (breeding, rearing and fattening facilities) equipped with the most modern Big Dutchman equipment. The full production capacity for each complex is 12,500 tonnes of live weight of pork per year.
Significant synergies have been created due to the good location of the new complexes near Cherkizovo Group's pig and processing facilities in the Tambov and Penza regions, and the breeding and genetic center in the Voronezh region, which was acquired in 2012. Cherkizovo Group's feed plant in the Lipetsk region provides the complexes with high-quality fodder.
"It's a very important event for our company, three pork complexes have started to operate at full capacity" -said CEO of Cherkizovo Group, Sergei Mikhailov. "We have started to develop our Pork division from the ground in 2006, and now the production capacity of this division is over 180,000 tonnes of live weight per year and the number of pigs this year will exceed 1.5 million. Because of the difficult situation in the industry caused by outbreaks of ASF and Russia's entrance to the WTO, only large agribusinesses built on advanced technologies can be competitive. Cherkizovo Group has chosen the construction of new facilities that fully meet international technology and veterinary standards as the development strategy for the pork segment that will be the most effective in terms of product quality and financial results. With the launch of the three pork complexes Cherkizovo Group could not only strengthen its position in the market, but also make a significant contribution to the food security program of Russia.
About Cherkizovo Group
Cherkizovo Group (LSE:CHE) is the largest meat manufacturer in Russia and one of the top three companies serving Russia's poultry, pork and meat processing markets. The company is also Russia's largest producer of fodder.
The Group includes 7 full cycle poultry production facilities, with a total capacity of 400,000 tons live weight p.a.; 14 modern pork production facilities with a total capacity of 180,000 tons live weight p.a.; 6 meat processing plants with a total capacity of 190,000 tons p.a.; 6 fodder plants with a total capacity of 1.4 million tons p.a.; grain storage facilities with a total storage capacity exceeding 500,000 tons; and a land bank exceeding 100,000 hectares. In 2012, Cherkizovo expects to produce more than half a million tons of meat and processed meat products.
Due to its vertically integrated structure, which includes agricultural land, grain storage facilities, feed production, livestock breeding, growing and slaughtering as well as meat processing and integrated distribution, Cherkizovo has consistently delivered sustainable revenue and profit growth. In 2011, Cherkizovo's US GAAP consolidated revenue increased 24% to USD 1,479 million, and net profit amounted to USD 147.8 millions
Within the last five years alone, Cherkizovo has invested more than USD 1 billion into the development of Russia's agriculture sector. In addition to existing production facilities, the Group is also investing in a 20 billion rouble hi-technology agro-industrial production complex in Elets, Lipetsk region. Cherkizovo's strategy includes both organic growth and investment in new projects, driving the consolidation of the Russian meat market. Cherkizovo shares are quoted on LSE and RTS/MICEX.
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