Milkiland acquired a cheese producer in Russia

Milkiland acquired the assets of JSC “Syrodel”, a cheese plant located in Rylsk city of Kursk region (Russian Federation). The plant is designed to produce cheese (up to 3.5 kt/ year), whole milk products and butter. Currently, it operates at about 10% of its capacity. The products of Syrodel are mainly sold in in Kursk, Voronezh and Lipetsk regions of Russia.

Strategically, Milkiland will use Syrodel to produce hard and specialty cheeses for Russian market and serve as supplier of butter, cream and other products for the Group’s Ostankino Dairy Combine based in Moscow.

During 2013 Milkiland intends to increase capacity utilization of Syrodel up to c. 60%, focusing on cheese and whole milk products. In 2014-15 Milkiland will consider modernization of the plant, mainly for the purpose to install new packaging lines and increase in production capacity.

Comment from Anatoliy Yurkevych, CEO, Milkiland N.V.:

“Acquisition of Syrodel is first step in fulfilling our strategic goal to establish cheese production in Russia – Milkiland’s primary market. The plant is favorably located in good raw milk region, and quite close to Ukrainian border, making possible hands-on control from our Ukrainian office.

In addition to producing cheese, Syrodel will strengthen supply base of our Ostankino, since distance allows competitive supply of concentrated milk and dairy products to Moscow.”