JBS announces purchase of pork unit in RS for R$80 million; will invest R$120 million in 5 years By Reuters

SÃO PAULO (Reuters) – JBS (BVMF:) announced that it will sign on Tuesday a protocol of intentions to acquire the pig processing unit of Cooperativa Languiru, in Poço das Antas (RS), upon payment of 80 million reais by the asset.

The company, the largest global meat producer, stated in a statement this Monday that it will invest another 120 million reais over the next five years to restructure the factory and bring new equipment to the unit, currently at a standstill.

With the return to activities, the plant’s processing capacity should reach 1,200 pigs per day and around 400 direct jobs should be maintained in the city, according to JBS.

“Rio Grande do Sul is very important for Seara’s business strategy, and this partnership is very relevant for us,” said Seara’s CEO, João Campos, in a statement.

The expectation is to resume production at the unit in March of next year. Currently, the pigs available in the region are being processed at Seara units in Ana Rech and Seberi.

According to the director of Seara’s Pig Business, Fábio Soares, with the Poço das Antas plant supplying the domestic market, especially the State itself, the company will be able to “expand exports from other units, qualified to serve also relevant markets”.

Soares added that there is potential for the plant in Poço das Antas to process 3,400 pigs daily in two shifts.

At this stage, the unit, in addition to serving the domestic market in Rio Grande do Sul, could also be qualified for exports to important destinations such as Chile and Singapore, among others, with the added value of the Seara brand.

(By Roberto Samora)