Cherkizovo Group opens a new production facility in Lipetsk regionCherkizovo Group, one of Russia's leading integrated and diversified meat producers, is pleased to announce the opening of a new production facility in the Lipetsk region, following the recent acquisition of OAO Chicken Kingdom on 2 November.
The new production facility will be one of the largest incubator sites in the European part of Russia with an annual production facility equal to approximately 50m incubator eggs. The incubator facility is included in the President's Program of agricultural sector development.
The opening of the new production unit coincides with the 10th Anniversary of the opening of OAO "Chicken Kingdom" itself. Irina Rukhadze, General Director of OAO "Chicken Kingdom", cut the ribbon. The celebration was attended by the Lipetsk Region authorities. After the opening ceremony guests were invited to a tour of the production facility.
Cherkizovo Group acquired OAO "Chicken Kingdom" in August 2007. The acquisition positioned the Group as the clear number one poultry producer in Russia.
Chicken Kingdom has a fully integrated poultry production cycle and operations in Lipetsk, Bryansk and Voronezh regions. The company produces chilled and frozen poultry products under the "Chicken Kingdom" brand name. It's one of the most recognized Russian frozen poultry brands. The company's production capacities already amount to 100,000 tons per year.
Based on consolidated US GAAP Standards, OAO "Chicken Kingdom" reported 2006 sales revenues of $109 million and EBITDA of $23 million.
Sergey Mikhailov, Chief Executive Officer of Cherkizovo Group, comments: "I am very happy that OAO "Chicken Kingdom" is celebrating its 10th Anniversary as part of Cherkizovo Group. The Lipetsk based company has become one of Russia's leaders in the poultry market and I believe together alongside our existing poultry business we have an exciting future ahead of us."
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