MHP starts construction of Vinnitsya poultry farm

MHP (LSE: MHPC LI) announced in a press release yesterday that it commenced construction of the first two phases of its Vinnitsya poultry farm. The first phase is expected to be completed in 2013, and phase two in 2015; the third and fourth phases are optional and depend on demand and pricing. If all four phases are completed, the new project would be twice as big as MHP’s Myronivka chicken farm, with each phases having an annual production capacity of 100 ths mt of chicken meat. Ruslan Patlavskyy: The commencement of the Vinnytsya factory became available for MHP after the company extended the maturity of its existing MHP’11 notes and placed new notes (both maturing in 2015) with an aggregate amount of USD ~580 mln. We see this news as neutral for the stock, as the market has already priced-in the proximity of project start, whereas the construction milestones, provided by MHP are in full accordance with its earlier disclosed plans.