China, Company News, Food, Mergers & Acquisition

BRF acquires processed foods plant in China

The new production unit is scheduled to begin operations under BRF management in the first quarter of 2025

BRF, one of the largest food companies in the world and owner of Sadia, Perdigão and Qualy brands, announces the acquisition of a modern processed foods plant in Henan province, China. The transaction represents a significant step forward for the company, which now has an industrial operation in the Chinese market, where it already sells animal protein. Built in 2013, the facility has two food processing lines, with a current capacity of approximately 30,000 tonnes per year and potential for expansion. Around BRL 460 million (580 RMB) will be invested, of which BRL 250 million (310 RMB) will be used for the acquisition and the balance in capex for adjustments and the expansion of two burger production lines. The investments are expected to create approximately 850 new jobs and double the plant’s capacity to around 60,000 tonnes per year. The new production unit is scheduled to begin operations under BRF management in the first quarter of 2025.

The acquisition is in line with the company’s strategy of expanding its global presence by diversifying its footprint and strengthening BRF’s competitiveness by advancing its offer of value-added products. The facility’s processed food line will enable the company to respond more effectively to regional demands. Additionally, it provides direct access to the Chinese market, one of the world’s largest protein consumer markets.

The plant is in Henan, a province in the Yellow River Valley in central China, considered the birthplace of Chinese civilisation. It’s the third most populous area in China, with around 100 million inhabitants. This region provides strategic access to a high-potential market. Raw materials for the plant may be sourced both locally in China and from BRF and Marfrig operations. BRF and Marfrig plants in Brazil, Argentina, and Uruguay are authorized to supply raw materials, ensuring a continuous and high-quality supply.

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