Extension of distribution network and opening of new trading house in the Republic of Tatarstan 
Cherkizovo Group OJSC, one of Russia's leading integrated and diversified meat producers, announces today the opening of a new trading house in Kazan. This is in line with the Group's strategy to expand its regional trading network in economically developed regions of Russia.
This move ensures Cherkizovo Group's total distribution network covers an area in which over 80% of Russia's population lives. In 2006, the Group opened trading houses in Russia's four regional centres - Ufa, Perm, St. Petersburg, Kazan, and the Group now has 14 trading houses in operation.
The new trading house is equipped with state of the art equipment for storage of frozen and chilled meat, including modern auto-refrigerators that will enable Cherkizovo Group to deliver high quality products throughout the Republic of Tatarstan and also control the quality of storage and delivery of products to retail chains. This follows the opening of the Group's trading house in Ufa city in August 2006, which uses similar equipment, based on Western best practice methods of storage and production.
The Republic of Tatarstan is Russia's eighth largest region in terms of population, and the region has one of the highest levels of income per capita and a developed retail network. Produce for the Kazan trade house will be supplied by the Group's meat-processing plants in the Ulyanovsk, Penza, and Moscow regions and also Petelinskaya (Moscow region) and Vasilyevskaya (Penza region) poultry plants.
Commenting on the opening, Igor Babayev, Chairman of the Board of Directors of Cherkizovo Group OJSC said:
"The opening of our new trading house strengthens the Group's positions in Tatarstan, one of Russia's most economically developed regions. Apart from the high-quality diversified range of products we will introduce to Kazan following this move, we are also pleased we will create employment opportunities and provide financial opportunities for the region through this."
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