Cherkizovo Group (MOEX: GCHE), the largest vertically integrated meat producer in Russia, has announced a major deal signed by CHERKIZOVO-PORK LLC, part of Cherkizovo Group.
CHERKIZOVO-PORK LLC has secured a RUB 15.4 bn (RUB 20 bn including interest) loan from Alfa-Bank that will be used to build, refurbish, and upgrade pig farms, purchase equipment for them, as well as acquire breeding materials, hybrid breeder sows, machinery and specialised vehicles.
With the funds available under the open credit line, the Company plans to build two sow farms and up to 20 nursery and finisher sites, of which two are scheduled for completion in 2019. In total, five new nursery and finisher sites will be built in 2019.
Cherkizovo Group’s mid-term strategy for the pork business is to boost performance by using the most cutting-edge production facilities and putting in place one of world’s best finisher nutrition programmes. The Company strives to make pork production as cost efficient as possible to strengthen its competitive position. Cherkizovo will not be complacent and will make every effort to enhance efficiency, cut costs, increase production volumes and bolster margins.