Brazilian meat producer BRF has signed a memorandum of understanding with the Saudi Arabian General Investment Authority (SAGIA), which will allow the construction and operation of a chicken processing plant in the country.
According to a securities filing lodged by BRF, the company will invest $120 million to construct the plant, which will be the company’s fifth production site in the Middle East.
According to BRF, the site will have an estimated production capacity of 50,000 tonnes per year, and the products produced at the new plant will include breaded and marinated products, burgers and more.
The products will mainly be produced for the Saudi market, but they will also be exported to other neighbouring countries.
In a statement, BRF said: “The company estimates the investment amount to be around $120 million, which will allow BRF to expand and consolidate its presence in the Saudi market.”
BRF has not yet selected a precise site for the new production plant, though a report from Reuters claimed that BRF chief financial officer Carlos Moura estimates that the site will be operational by the end of 2021.
Last month, sold its 49% stake in the SATS BRF Food joint venture in Singapore to SATS Food Services for $12.3 million, as part of a restructuring process which enabled BRF to focus on its core markets in Brazil, Asia and in the Middle East.
By Martin White
This month, the second S3FOOD voucher call selected 14 innovative SME-driven projects all across Europe. These projects will receive funding to develop and adopt innovative digital solutions.
The Global Taste Trends report maps out the key taste linked to trends across the US and Canada, Mexico, Latin America, Europe and the Asia Pacific Middle East and Africa highlighting how they vary and travel across these regions.
The acquisition significantly broadens Cargill’s offerings in the decorations space, enabling the company’s cocoa and chocolate business to better serve gourmet customers in Europe and worldwide.