Italy’s largest poultry company, Gruppo Veronesi, is expanding into Russia.

The company is investing more than EUR11 million (US$12.2 million) for its “first integrated cross-border supply chain for white meat in Russia,” reported European Supermarket Magazine.

The company set up a production site in Russia’s Belgorod district, which would be the company’s first facility outside of Italy. Veronesi hopes the expansion will help meet the growing demand for poultry products in Russia.

Finest, an Italian financial corporation, will collaborate with Gruppo Veronesi and an unnamed Russian minority partner to establish the supply chain.

Gruppo Veronesi, according to the WATTAgNet Top Companies Database, has 11 processing plants, four hatcheries and seven feed mills. It is Italy’s largest poultry company, slaughtering 350 million broilers annually. It is also the country’s largest feed company, having produced 3.2 million metric tons of animal feed in 2017.

Gruppo Veronesi and Germany’s PHW Group are tied for fourth as Europe’s largest poultry companies, according to the Poultry International Top Companies rankings. It is Europe’s ninth largest feed manufacturer, and is also involved in the production of pork and table eggs. Exports currently account for about 15% of Veronesi’s sales.

As it enters the Russian poultry market, Veronesi’s key competitors will be Cherkizovo Group, Europe’s third largest poultry company, and Prioskolye, Europe’s 11th largest poultry company. Cherkizovo is involved in the production of broilers, turkey, pork and crops. Priosolye has a presence in the broiler, turkey and table egg sectors.