BRF to acquire processed foods factory in China
The factory cost $43 million
21 November 2024
1 minute read
By: Brazilian pork and chicken processor BRF said on Wednesday that it has signed a binding agreement to acquire a processed foods factory in China's Henan province for $43 million, reported Reuters.
BRF said in a securities filing it will invest approximately $36 million in expanding the plant and added that it expects the factory to start operating under BRF management in the first quarter of 2025.
According to BRF, the investments are expected to double the factory's capacity to 60,000 metric tonnes per year from 30,000 metric tonnes currently. Built in 2013, the plant has two food processing lines.
"The investment represents a significant opportunity to expand the customer base and boost the company's sales," BRF said in a statement, adding that it grants "direct access to the Chinese market, one of the world's largest protein consuming markets."
BRF made the announcement during Chinese President Xi Jinping's state visit with his Brazilian counterpart Luiz Inacio Lula da Silva, as the leaders raised the status of their nations' global strategic partnership.
