The project will be implemented by Pravdinskoe Pork Production 2 (member of Russia Baltic Pork Invest (RBPI Group), Norway, whose major holder is Charoen Pokphand Foods, a Thai investment fund.
The investments will make about RUB 10 billion,with almost 500 new jobs to be created.
Pravdinskoye Pig-Breeding Production-2 LLC is going to build commercial pig-breeding units for RUB 4.7 and 4.9 bn in two districts of the Nizhny Novgorod Region.
On February 18, the Regional Government hosted a business meeting of Governor Nikolai Lyubimov and CEO of MC RBPI GROUP LLC Thomas Norgaard. They discussed the setup of a large pig breeding complex in the Ryazan Region, as well as the prospects for further mutually beneficial cooperation in the agricultural industry.
Thailand's Charoen Pokphand Foods (CP Foods) will invest more than RUB 4.5 billion in upgrade of its Severnaya and Voiskovitsy poultry farms in the Leningrad region, which will increase the capacity of the largest broiler meat producer in the North-West by 10% up to 275,000 tons of poultry in live weight per annum. The investor expects that the added output will be exported mainly to China. Russia now supplies large amounts of poultry meat to the country; however, local producers should not expect this to continue in the long-term future, experts believe.
According to the Ryazan Region governor Nikolay Lyubimov, Thai agricultural conglomerate CP Group will begin building pig farms in three areas in the Ryazan Region with total cost of about 7 billion rubles in 2020.
Thai CP Foods planning to buy Ostankino Meat Processing Plant in 2017 may acquire another asset. It is now interested in Belgorod-based BEZRK-Belgrankorm holding company, one of the Top 5 Russian poultry producers. The transaction cost may reach 20 billion rubles.
The fact that Severnaya poultry farm is to build a new nucleus was reported by several market participants and authorities of the Leningrad region. The construction of the nucleus is necessary to create a GP herd - the livestock to reproduce of birds, which will then give the eggs from which the broiler chickens will appear. The volume of investments will be at least 2 billion rubles, which will ensure the need for production in breeding birds, experts estimated.
Charoen Pokphand Group (CP Group), the largest conglomerate in Thailand, plans to build a full-cycle pig-breeding complex in the Ryazan Regions, as RIA Novosti was informed by the Russian Direct Investment Fund with confirmation by a representative of the СР Group.
CP Group has already acquired land plots in the Skopino Municipal District for the new full-cycle pig-breeding complex for 6 thousand sows. The Complex is expected to reach its full capacity by Q4 2020.
“The investment in the project providing for a minimal load on the local ecosystem will be RUB 3.7 billion. The Complex will be constructed by the Norwegian RBPI Group, a subsidiary of the CP Group, having expertise in pork production. Due to the project implementation, it is planned to create 160 new jobs,” a representative of the Thai company said. According to him, the production volume will reach 19 thousand tons of pork per year.
he Russian Direct Investment Fund (RDIF), RBPI Group, a subsidiary of the Thai conglomerate Charoen Pokphand Group, and the Kaliningrad Region government agreed to jointly implement the project to build a veterinary and sanitary utilization plant. It will be built in the Gvardeyskiy municipal district of the Kaliningrad Region, RDIF reports. The relevant agreement was signed at the St. Petersburg International Economic Forum (SPIEF).
Talks to acquire a top Russian meat factory, the Ostankino Meat Processing Plant (OMPP), could be concluded by Thailand's CP Foods arm Charoen Pokphand Foods (overseas) LLC (CP Foods) next month.
A spokesman for Charoen Pokphand Group Russia confirmed that the potential deal could cost CP Foods $150 to $200 mill. The deal would be part of recently announced plans by CP Foods parent, Charoen Pokphand Group, to establish a food supply chain in Russia from farm to final processing and manufacture. A CP Russia spokesman for Charoen Pokphand Group Russia confirmed that the talks were ongoing, but that no final decision on terms had yet been taken.
In the meantime, representatives of OMPP declined to comment, saying only that CP Foods was not the only bidder for the company, which is a key pigmeat producer. An official spokesman for Alexander Tkachev, Russia’s agriculture minister, welcomed the prospect of a deal, which he predicted would lead to significant investment in the Russian meat processing industry.
OMPP sells more than 100 different products under the brands of Ostankino and Papa Mozhet. The company operates pig complexes in the Moscow and Smolensk regions, with a total capacity of 45,000 t of pork per year. It also has a more general plant in Moscow producing sausages, frankfurters, wieners, hams and chilled meat.
OMPP’s declared sales in 2015 by volume were 190,000 t of meat products, with revenues of $627 mill., with profits of $13.88 mill. The company is owned by its founder and CEO Mikhail Popov. Currently, the company holds up to 5% of the Russian meat processing market.
In addition to growing its Russian pork business, in 2015, CP Group purchased two poult ry units near St Petersburg, able to produce 180,000 t of chicken meat annually.
According to Kommersant, which refers to a source conversant with the negotiations, CP Foods - a company of Thailand’s CP Group - is negotiating for the acquisition of Ostankino Meat Processing Plant (OMPK). No specific agreement has been reached, the parties have not commented on this matter.
CP Foods Russia (a member of CP Group) plans to build a full-cycle livestock complex with the capacity of 180,000 pigs per year in the Skopinsky District, the press office of the Government of the Ryazan Region reports.
The press release says that the matters relating to the project implementation were discussed on Tuesday during the business meeting of the regional managers with the delegation of CP Foods Russia. The event was attended by Governor Oleg Kovalyov, President of CP Foods Russia Group of Companies Srina Buri, President of the Norvegian company MC RBPI Group LLC Thomas Norgaard, and executives of a number of regional ministries and agencies, as well as business units of CP Foods Russia.
The joint venture of the largest conglomerate in Thailand - Charoen Pokphand Group (CP Group) and China’s BannerDairy – Banner Infant Dairy Products, together with the Russian Direct Investment Fund (RDIF), will invest about $1 billion in the construction of dairy complex in the Ryazan Region.
Thailand’s Charoen Pokphand Foods Public Company Limited (CPF) will acquire two Russian poultry plants – Severnaya and Voyskovitsy in the Leningrad Region via its Dutch subsidiary, Charoen Pokphand Foods said in a statement. The total value of the transaction is USD 680 million.
At present, Severnaya (100 percent) and Voyskovitsy (80 percent) are directly owned by Agro-Invest Brinky B.V., which is controlled by the Brink family of entrepreneurs in the Netherlands, according to the Spark database.
Agro-Invest must transfer these assets to the newly established legal entity prior to 31 August 2015 according to the terms of the transaction with CPF. Charoen Pokphand will then purchase an 80 percent stake in the legal entity via its Dutch subsidiary CPF Netherlands BV. CPF expects this part of the transaction to be completed by the end of 2015.
The remaining 20 percent stake in CPF Netherlands BV will be purchased prior to 31 August 2018, the Thai company said in a press release.
The two poultry plants increased their combined net profit by four-fold to almost RUB 5.1 billion in 2014, Charoen Pokphand said in a statement. Revenue increased 40 percent to RUB 16.9 billion last year.
Charoen Pokphand Group is part of Thailand’s leading agro-industrial conglomerate Charoen Pokphand Foods (CPF). The company’s core activities include livestock and aquaculture. The conglomerate exports products to 40 countries.
CPF currently owns several animal feed and pork enterprises in the Moscow, Kaliningrad and Kaluga Regions and has invested approximately USD 300 million in the Russian economy.
The Thai concern announced in August 2014 that it plans to invest more than USD 2 billion in the Russian agro-industrial sector prior to 2020.
Charoen Pokphand Foods Plc.
Company's website: https://www.cpfworldwide.com/th/
T: +66 (0) 2625 8000
Contact: Mr. Adirek Sripratak, CEO
Charoen Pokphand Foods is one of the largest producers, processors and exporters of meat in South-East Asia and one of the world’s leading manufacturer of animal feed. The company manages a number of animal feed plants and produces feed for poultry, swine, shrimp, fish, as well as home pets (cats and dogs), not only in Thailand, but also in Cambodia, China, India, Indonesia, Malaysia, Burma, Singapore, Turkey, Taiwan, USA and Vietnam.