Vertically integrated Russian meat producer Cherkizovo said it will be increasing production at its facilities in Penza in response to recent market developments, including a ban on U.S. poultry imports,The Moscow Times reported. "Cherkizovo welcomes the government of Russia's recent provisions aimed at stimulating demand for national poultry producers by reducing poultry import quotas and restricting the use of chlorine … in poultry processing," said Sergei Mikhailov, chief executive of Cherkizovo Group.

The Penza project would increase live-weight production from 60,000 metric tons to 120,000 metric tons annually and involve a new incubation facility and slaughterhouse. The expansion is expected to cost about $120M.

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Cherkizovo could step up its poultry production 40% in 2012 thanks to the Penza expansion and another expansion in Bryansk, The Moscow Times said.