Cherkizovo Group, one of Russia's largest meat producers, intends to acquire from US food company Cargill a plant in the Tula region, which produces meat products for the McDonald's restaurant chain. The cost of the site is estimated at $40 million.

It is a poultry meat processing plant in Efremov in the Tula Region, the media report. According to the American company, at the moment the deal is already being approved by the Federal Antimonopoly Service.

Cherkizovo Group is one of Russia's largest suppliers of meat products. Its Cherkizovo, Petelinka and Pava-Pava brands together represent almost 7% of the market. Last year, Cherkizovo earned RUB 120 billion, of which RUB 9 billion was net profit.

The company currently sells meat products to fast food chains KFC, Burger King, McDonald's and chain pizzerias. Last year, sales in this area increased by 95%, and the catering market itself has been named by the company as one of its main areas of focus.

The American company opened a poultry meat processing plant near Tula 7 years ago with the main goal of selling McDonald's products. Today the company produces 18 thousand tons of its own products each year and has invested 40 million.

Sergei Mikhailov, Cherkizovo's CEO, has said that the company intends to increase the capacity of the plant, which is currently undergoing a transaction.

Made in Russia // Made in Russia

Author: Ksenia Gustova