Igor Artamonov, Head of the Lipetsk Region Administration, met with senior management from Cherkizovo Group (MOEX: GCHE) to discuss the construction of an oil extraction plant and other investment initiatives in the region. Special attention was given to the Company's compliance with the highest environmental standards.
This Thursday, Igor Artamonov, Head of the Lipetsk Region Administration, held a meeting with Cherkizovo Group's senior management to learn more about progress under the ongoing investment projects in the region. The discussion centred on the construction of an oil extraction plant in the Yeletsky Area, which will enter its active phase in spring 2020.
The plant will be located in the Yeletsprom special economic zone. As a result, it will be eligible for tax benefits and state support in the form of subsidized interest rates on bank loans. The plant, which will have a capacity of 2,500 tonnes per day, is scheduled to be launched in 2022. The project is estimated to cost RUB 7.2 billion (including VAT) and will help create some 100 new jobs.
“Our oil extraction plant for processing oilseeds will help us to keep our poultry feed prices competitive. It will also enhance margins for farmers growing oilseed crops in the Lipetsk Region, as it will ensure stable demand and fair pricing for the soybeans they harvest,” said Evgeny Mikhaylov, Chairman of the Board of Directors of Cherkizovo Group.
Mr Mikhaylov considers the meeting to have been very productive. According to him, Cherkizovo Group backed Igor Artamonov’s proposal that the Company should raise salaries at its Lipetsk facilities and take a more active part in the social development of the region.
Among other discussion points were Cherkizovo’s plans to open new poultry and pig farms in the Lipetsk Region. Their construction will bring about additional investments in the amount of RUB 10 billion and create 350 new jobs. The regional authorities and Cherkizovo representatives agreed that these projects should comply with the highest applicable environmental standards. The Company also promised to allocate more funds to ensure environmental safety across its production sites in the region.
“We always conduct an environmental expert review before approving a project. At the present time, discussions are still ongoing. We want to find out more about suggested salaries, tax payments to local and regional budgets and the Company’s engagement in terms of social responsibility,” noted Igor Artamonov.