Cherkizovo Group has started the initial phase of its project to double capacity at its Bryansk poultry production site, located in Central Russia 350km south-west of Moscow.

Investment in the first stage of the project, which is supported by Sberbank of Russia, will be 1.8 billion roubles or approximately $62 million.

Both stages of the Bryansk project are expected to be completed in 2012, raising the current annual capacity of the site from 32,000 tonnes to 63,500 tonnes of live weight poultry meat.

Phase one of Cherkizovo’s Bryansk project is now underway. It includes the construction of 63 bird houses; 52 at a new poultry breeding facility, operational in the second half of 2010, and 11 at three existing sites, which will be commissioned by the end of 2009.

In addition, building work has begun on a new hatchery with an annual capacity of 43 million eggs. The new houses and hatchery will significantly increase Cherkizovo’s bird capacity and help the Group take advantage of growing market opportunities.

The second phase of the project is expected to commence at the end of 2010, and includes plans to build a new state-of-the-art fodder factory and further increase poultry breeding capacity.

Russia is currently the world’s largest importer of meat, but seeks to become more self-sufficient in meat production by 2012. Cherkizovo Group, which is number one in the Russian poultry market*, is well positioned to benefit from the domestic Russian meat sector’s significant growth potential.

Sergey Mikhailov, CEO of Cherkizovo Group said: “An important component of Cherkizovo’s success is our commitment to invest for future capacity growth, even during the global financial crisis. This investment supports the Group’s strategy to provide the Russian market with the highest quality, locally sourced poultry. We are confident this investment will increase efficiency and drive the profitability of the Group."