GERMANY, Rheda-Wiedenbrück. The Tönnies meat company is selling its entire pig production in Russia for the equivalent of $290 million.
German meat group Tönnies is selling its Russian subsidiary APK Don to competitor Charoen Pokphand Foods at the turn of the year. The globally active meat giant CP Foods, headquartered in Thailand, is Russia's ninth-largest pork company with an annual pork production of 129,000 t. AKP Don, which still belongs to Tönnies, is number 11 in Russia with an annual production of 112,700 t of pork, reports SUS.
Dr. Andre Vielstädte commented when asked by FLEISCHWIRTSCHAFT: "We have reached an agreement with all shareholders and CP Foods to take over our APK Don Group. With this step, we are separating from our division there. However, we will remain connected to the Russian market through our representative office in Moscow and will of course continue to keep an eye on it. We have agreed not to disclose the exact terms."
Tönnies' pig production in Russia comprises a total of twelve sites with a combined total of 30,000 sows and associated fattening facilities. Under the terms of the deal, CP Foods will take over Agro-Soyuz TSh and Myaso-Soyuz T, companies controlling a number of the Don AIC's businesses: Alexeyevsky Feed Mill, the Alexeyevsky Bacon and Donskoy Bacon pork complexes, the Belgorod Meat Processing Plant (MPK Belgorod), the Agro-Oskol plant, Agro-Ostrogozhsk LLC and Khokhol Trostyanka LLC.
CP Foods puts the purchase price for the entire Tönnies business in Russia at the equivalent of $ 290 mill. according to the trade magazine SUS.