Brazil's BRF signs deal to acquire processed foods factory in China (updated)

BRF SA

20/11/2024 17:25

(Adds details, context in paragraphs 3-5)
       SAO PAULO, Nov 20 (Reuters) - Brazilian pork and chicken
processor BRF  BRFS3.SA  said on Wednesday that it has signed a
binding agreement to acquire a processed foods factory in
China's Henan province for $43 million.
    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.
  

 (Reporting by Roberto Samora and Luana Maria Benedito; Editing
by Anthony Esposito)
 ((LuanaMaria.Benedito@thomsonreuters.com; +551156447723;))