Baby food plants
Istra plant
The Istra plant is one of the largest and most modern baby food plants in the CIS and Eastern Europe and was constructed in 2002. In 2007 the Istra plant quality control system was awarded ISO 9001:2000 quality control certificate. The plant is located in the town of Istra in the Moscow region. The Istra plant currently produces BMS, both ordinary and special, mixtures for expectant and breastfeeding mothers, albumen-free mixtures for children suffering from phenylketonuria, enteral clinical nutrition products and baby water.
Dinskoy plant
The Dinskoy plant is one of the leading puree and juice production facilities in Russia, producing fruit and vegetable purees and juices. The plant is located in the Krasnodar region in Russia. The Dinskoy plant benefits from a favourable location, which allows raw materials (primarily fruits and vegetables) to be purchased at a low cost and savings on distribution expenses.
Sibay plant
The plant is located in the Republic of Bashkortostan in Russia. The plant is located on land plots with an aggregate area of 130,000 metres2. In 2004, the Sibay plant changed its production focus from the production of dairy products to the production of dried baby food (both non-dairy and milk-based) and BMS. However, the plant continues to produce certain volumes, albeit limited, of dry milk and butter. The Company has improved and raised the capacity of the Sibay plant by investing in boiler renovations, the expansion of dried baby food production, the construction of BMS production and packaging facilities, such as a Tetra Pak filling and packing line, and the installation of a batcher module and high-temperature heat exchange cylinder.
Mixed plants
Penza plant
The Penza plant located in the city of Penza was built in the 1980s and acquired by the Group in 2000. The plant currently produces whole milk products, hard cheese, dry milk, butter, as well as baby food. The plant has recently started production of new types of fruit purees and juices with milk additives. The Penza plant is the Group’s leading producer of processed dairy food. It uses mainly Russian equipment, with the exception of the canned baby food production lines, which are Italian. The plant’s product mix is currently dominated by milk and fermented milk products, accounting for 26% and 56% of total production of the plant, respectively.
Zelenodolsk plant
The Zelenodolsk plant was acquired by the Group in 1998 and fully modernised in 2000. The plant is located in the city of Zelenodolsk, in the Republic of Tatarstan. The plant is located on land plots with an aggregate area of 14,800 metres2. The plant produces liquid dairy baby food, baby curds, and whole milk products, including bio products and yoghurts. The plant also produces dry milk and butter.
Estmilk plant
The Estmilk plant was acquired by the Group in 2004. The plant is located in Estonia, 70 km from Tallinn. The plant was fully renovated in 2001 and is now one of the most modern dairy plants in the Baltic States. In 2006, the Estmilk plant switched from production of dairy products to production of baby food and currently specialises in production of BMS, but continues to produce dairy products such as whole milk products, cheese, dry milk and butter. In 2005 and 2006, the Group invested approximately USD 3.7 million in re-equipping the plant to start the production of BMS. The equipment installed for BMS production complies with European requirements and allows the Group to export finished products to the European market.
Khorol plant
The Khorol plant was acquired by the Group in 2006. It is located in Ukraine, in the Poltavsky region on land plots with an aggregate area of 58,800 metres2, and is one of the largest baby food manufacturers in Ukraine in terms of sales. Baby food produced at the Khorol plant includes dried baby food (both non-dairy and milk-based) and ordinary BMS. The Khorol plant also produces certain types of whole milk products, dry milk and butter. It was commissioned in 1979 and subsequently modernised during 1998 and 1999. The modernisation activities with respect to the Khorol plant included the replacement of an old drying machine with a new one and the modernisation of the plant’s dried baby food processing lines. The total capital expenditures undertaken in 2005 and 2006 amounted to approximately USD 5.2 million.
Dairy plants
Vologda plant
The Vologda plant, located in the Vologda region, was acquired by the Group in 2001. The plant produces whole milk products, butter and dry milk. In 1999, new production equipment was installed, which allowed the Group to start production of UHT sterilised milk and yoghurts and increase the production of other whole milk products. The processing lines for sterilised milk and butter were manufactured in Sweden and the Czech Republic, respectively. Other installed equipment was produced in Germany and in Russia.
Belgorod plant
The Group acquired the Belgorod plant in 2000. The investments made in the Belgorod plant during 2005 and 2006 were aimed at renovating the plant’s production facilities for whole milk products. The plant produces commodity products such as dry milk and butter and has recently started production of whole milk products, following the upgrade of its production facilities in 2005 and 2006. As part of the plan for the relocation of production capacities of the Moscow plant, the Group plans to transfer the production of dry baby cacao milk to the Belgorod plant in the second quarter of 2007.
Biysk plant
The Group acquired the Biysk plant in 2003. The plant is located in the city of Biysk, in the Altay region, and produces hard and processed cheese. According to the Group’s estimates, the Biysk plant has the largest cheese storage facilities in Russia.
Filimonovo plant
The Group acquired the Filimonovo plant in 2003. The plant is located in the city of Filimonovo, in the Krasnoyarsk region. The Filimonovo plant produces whole milk products, canned milk and butter and dry milk. In 2005 and 2006, the Group invested approximately USD 0.5 million in the installation of a Tetra Fino Aseptic filling line at the plant.