/KASE, May 28, 09/ - Ust-Kamenogorsk poultry plant (East Kazakhstan oblast) a company listed on Kazakhstan Stock Exchange (KASE), provided KASE with a press release:

Quotation beginning

Ust-Kamenogorsk poultry plant launched national project Eurasia to meet needs Kazakhstan population on poultry meat at reasonable prices. The first stage was opening of poultry processing plant in Ust-Kamenogorsk. USD70 m. will be invested into the project in 7 years.

The poultry plant pursues to become a leader in production and sales of poultry meat in Kazakhstan and Central Asia by 2014.

The project aims to transfer domestic poultry industry to global standards, through modernization of operational systems and building modern facilities complying with international standards. Global standards will allow enlarging production assortment and implementing leading practices of delivery and sales.

The two main reasons to launch the project were:

1. Kazakhstan population poultry meat needs are met only 30 %. Despite in last five years 5 domestic poultry meat production increased 3 times.

2. A necessity to improve domestic food safety and reduction of import in accordance with the State agricultural and food program for 2003-2005, which was discussed at a meeting of the Security Council in Astana held May 28, 2008 presided by Kazakhstan President Nursultan Nazarbaev.

The Eurasia project aims to fill Kazakhstan market with domestic production and make it independent of import, which will be a guarantee of food security of the country. "Launch of production highly competitive capacities, filling the market with own quality production will enforce food safety of the country and reduce import", - plant general director S. Tolukpaev said.

To implement the project a vertically integrated holding breeding, processing and marketing poultry meat plant will be established. Full cycle of production, storage and sales will allow for a producer to flexibly manage the cost of the entire production chain and therewith, form optimal price for end products.

The project will be implemented in three stages, which will take seven years.

Highlights:

• 60,000 tones poultry meat per year in East Kazakhstan and Almaty oblast;
• high quality infrastructure and jobs;
• distribution and marketing (1,500 new jobs);
• high value added production, export potential;
• good effect on feed base development and other productions;
• diversification of poultry meat market, introduction and support of "chilled and deep processing";
• high yield and cost effectiveness - attractive for investors (full return of investment in 5 years);

Modernization of the poultry plant was named project Phoenix and includes: change of information systems, communications, safety and control systems, technologies; infrastructure and construction of a modern ready production plant. In 2009-2010 it is planned to increase meat production from 12 to 25 th. tones a year at the expense of re-equipment, repairs and new capacities, and modernization of incubator. Over USD25 m. will be invested in the project. Of which poultry meat processing plant construction took USD14 m., which allowed equipping the plant with new equipment from best international producers. As well many processes will be automotive: slaughter and processing, improving labor conditions significantly.

The consumers will receive:

• production complying with global standards;
• safety certificated products complying with Islamic standard "Halal";
• new assortment category "chilled products".

Quotation end

[2009-05-28]