Sadia sells its Russian plant to Miratorg
Kaliningrad plant expected to keep producing Sadia brand products under license.
Sadia, which owned 60% of a poultry processing plant in Kaliningrad, sold it to the Miratorg Group, for $77.5 millon. The Miratorg Group was Sadia's partner in this joint venture, according to the Brazilian press.
This further processing plant specializes in ready-to-eat protein products, with McDonald's among its main clients. It also produces Sadia brand products for Russian supermarkets. Sadia decided to sell this plant at the start of this year, and the sale would have closed in May, but it was interrupted by Sadia's negotiations to merge with Perdigao in Brazil.
The joint-venture between Sadia and Miratorg was announced in 2006; the plant construction started in 2007. At that time it was a $140 million investment. However, the plant suffered a series of setbacks, and didn't begin operations until the beginning of this year. Sadia stated that the sale of the plant "won’t alter Sadia's marketing strategy in the Russian market." Sadia has a very strong brand in Russia, with 50% of the market of imported ready-to-eat pork-based products and 40% of the market of chicken-based imported products, according to Meat Russia.
It is expected that the Kaliningrad plant will continue to produce Sadia brand products, under license. The Miratorg Group also is the local distribuidor of Sadia’s exported products.