RDIF and Italy’s Cremonini announce joint investments in Russian beef production industry
They will invest in Inalca's Orenbeef, based in Orenburg Region
A consortium of investors led by the Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, and a leading European meat producer Inalca (owned by Italian Cremonini Group) announce a joint investment totaling over RUB1bn (14 mln Eur) into the company’s Russian primary beef production operations.
In 2014, Inalca opened an integrated plant “Orenbeef” in the Orenburg region, slaughtering and producing chilled and frozen meat products. The agreement sets out that RDIF together with its co-investors will receive a stake in Orenbeef. The company plans to use the proceeds for further development and vertical integration of the business, including the construction of feedlots.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said: “The investments announced today contribute to reaching the goals set out in Russia’s national growth project “International Cooperation and Export”. Inalca is a recognized leader in the European meat and meat products market. The joint investments will contribute to the development of new production facilities and jobs in Russia, introduce world best practices and advanced technologies into the Russian agriculture, as well as broaden consumer choice by providing high-quality meat products”.
Vincenzo Cremonini, CEO of the Cremonini Group, said: “INALCA is present in Russia with direct operations for 20 years and its successful business model is based on a thorough integration of a sustainable production chain from farming to processing and to distribution. This business model is also instrumental for maximizing the value of the work of thousands of farmers. We are very happy with RDIF’s equity investment that will speed up this process, enhancing the country’s beef self-sufficiency and contributing to Russia’s transformation into a net beef exporter”.
Inalca Spa is the company of the Cremonini Group that is the European leader in production of beef, cured meats and snacks and in distribution of food products abroad, one of the few Italian companies to oversee the entire production chain. The company with state participation through Cdp Equity (Cassa Depositi & Prestiti Group) reported revenues of more than €2bn in 2018, of which 50% in exports.
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