Albert Davleev, regional director of the U.S. Poultry and Egg Export Council
Photo: Alexander Miridonov
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Germans Set Up Chicken Plant in Russia
PHW-Gruppe Lohmann & Co., Germany's largest producer of chicken meat, has opened a division in Russia, Wiesenhof-Kaliningrad-International, which will produce chicken products in Kaliningrad Region. The German company thus joins Brazilian companies Sadia and Perdigao as foreign chicken producers in Russia. Unlike the Brazilians, however, the German company will not provide produce for the local market. Rather, its products will all be shipped to Germany.
The local administration in Kaliningrad announced last week on its website that Wiesenhof-Kaliningrad-International would become a resident of that region's special economic zone. It also states there that the company will build a chicken meat processing plant in the village of Maloe Isakovo, Guryev District. Initial investment in the project will be 288.9 million rubles (about $12 million). The company will produce 15,000 tons of frozen chicken meat and chicken-based food products per year. Other types of meat may be processed there as well, and those products sold in both Russia and Europe.
The Engel & Zimmermann advertising agency, which represents Wiesenhof International, confirmed that plans were in place, but declined to discuss the details, saying aprиs conference will be held in Moscow in two weeks.
Observers note that residence in the special economic zone will give the company benefits on meat import duties. It will thus be able to ship meat into Russia for processing and then to Germany. Processing costs are lower in Russia than in Germany. Observers also note that the scale of the German company's operations is modest and might be considered a test project. The company operated in Russia in the 1990s and opened an office in Moscow again last year. That office closed after the company was unable to find a local partner for distribution.
www.kommersant.com
All the Article in Russian as of Feb. 04, 2008
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