Agroholding Cherkizovo is considering the possibility of joining the project for the production of French fries, investments may amount to about € 100 million, Sergey Mikhailov, CEO of Cherkizovo, told reporters at the Russian Investment Forum.
“We are really looking at a potato project ... Probably, plus or minus investments there can be in the range of € 100 million,” he said, noting that the amount of investments and production volumes are still under assessment.
Mikhailov emphasized that the final decision on the launch of the project or on its location had not yet been made.
According to him, the project is likely to be implemented in partnership with a strategic investor, since Cherkizovo does not yet have experience in implementing potato production projects. One of the possible partners in the framework of the project may be a Canadian potato company McCainHowever, the decision on the form in which the partnership will be implemented has not yet been made.
“The strategic partner in this case is a carrier of technologies and also has access to the Russian market and outside the Russian market today,” the head of the company explained. He noted that processed potatoes for fast food systems (KFC, McDonald's, Burger King) are now mostly imported. In this regard, Cherkizovo intends to first ensure import substitution of these products, and then start exporting them. The decision on whether Cherkizovo will participate in the potato production project is planned to be taken within a year, he added.
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The Cherkizovo Group is one of the largest Russian producers of poultry and pork and other meat products. The company is also engaged in crop production. The company's brands include Petelinka, Kurinoe Tsarstvo and Mosselprom.
Net profit of the Cherkizovo group under IFRS for January - September 2018 amounted to 10,4 billion rubles, an increase of 1,8 times compared to the same period in 2017.
Source: https://tass.ru