Cherkizovo acquires Cargill’s chicken processing facility in Russia

Russian meat producer Cherkizovo Group has completed the previously announced acquisition of chicken processing facility in the Tula region from Cargill.

Cherkizovo Group’s AIC Mikhailovsky executed the deal to acquire Сompass Foods, which is based in Efremov, Tula, from Cargill.

Cherkizovo Group CEO Sergey Mikhailov said: “We are happy that the deal was closed on time, thanks to great efforts and professionalism of Cherkizovo and Cargill teams. We believe that the new asset will be integrated into the Group in a matter of months.

“I am confident that the experience and expertise of the newly acquired team will bring in additional HoReCa competencies, which we seek to expand as one of our top priorities.”

The chicken processing facility is engaged in the production of nuggets and other poultry products with a 20,000tpa production capacity.

The majority of the products manufactured are supplied to fast-food chain McDonald’s.

With the acquisition of the new facility, Cherkizovo aims to enhance its presence with foodservice clientele.

In July, the two companies signed a preliminary agreement that was later approved by the Russian Federal Antimonopoly Service.

Financial details of the deal have not been disclosed by both the companies.

McDonald’s senior purchasing and logistics manager Sergey Kapkov said: “McDonald’s has been consistently expanding its network of domestic suppliers.

“99% of our products are sourced locally. We are happy to see Cherkizovo Group embracing additional opportunities through our partnership. This integration will foster further market development.”

In another development, Cargill has announced plans for the construction of a ‘House of Chocolate’ complex at its site in Mouscron, Belgium.

The new $21m complex will feature a chocolate experience centre, a unique pilot plant, a sensory lab and creative workspace for its chocolate research and development team in Europe.