Construction work on the Vinnytsia project, which commenced as announced previously in May 2010, is running to schedule and on budget. Significant progress has already been made on a poultry farm, a fodder plant and infrastructure at the Vinnytsia site. Vinnytsia Complex will contain broiler production complexes, a breeder farm, hatchery, a fodder complex and a slaughter house. It will be the largest of its kind in Europe with a production capacity of 440,000 tonnes of chicken meat per year.

All equipment required for Phase 1 is already contracted and is being dispatched now. It is expected that the first phase will be launched into operation in the beginning of 2013 (first line produces 110,000 tones), and will start working at full capacity (two lines) in 2015, producing 220,000 tones of poultry per annum.

When fully complete and operational (Phase 1 and 2) – expected by 2017-2018 - this facility will transform MHP from being a domestic market leader into one of the largest poultry production companies in the world, providing it with the capacity to meet the growing Ukrainian demand as well as the ability to export into Europe and other key export markets.

Phase 1 projected cost is US $750 m and financing for this will consist of a mixture of debt and cash.

Poultry Farm
• Construction of a hatchery is 90% fulfilled
• Construction of slaughter house for Phase 1 (220,000 tones of poultry per annum) is 70% fulfilled
• 2 brigades (chicken rearing zones) with 38 chicken houses in each is 70% fulfilled
Installation of the equipment at all poultry farm sites will be commenced in September 2011.

Fodder Plant
• Construction sunflower seeds silo (200,000 m3) is complete, installation of the equipment is 95% fulfilled.
• Construction of grain silo (200,000 m3) is complete, installation of the equipment is 90% fulfilled.
• Construction of a fodder and an oil pressing plants has been commenced.

Infrastructure and Social Responsibility
Construction of an independent electric power substation with the capacity of 100 MW is 95% fulfilled. External transmission network - 90% fulfilled. External gas supply - 90% fulfilled. The construction of the external water supply network has been commenced (50% complete).
In addition, as a part of the facility, MHP plans to construct 45km of new roads (over 50% complete), 260 new residential apartments, a hostel with a capacity for 800 people and a kindergarten with a capacity for 260 children.

Poultry Farm

Fodder Plant