JBS SA has signed an agreement to lease several Frangosul plants in Brazil, giving JBS the ability to increase its poultry production capacity by more than 15 percent to nearly 9 million birds per day.
The assets will permit JBS to have a relevant operation in the chicken sector in Brazil, allowing technology and knowledge transfer between its various production units, according to JBS. The company will not take on any pending matters, liabilities, leans or any other impediments. The agreement is focused on a contract to lease the assets which will be operated by JBS and whereby all employees of Frangosul will be hired and all contracts with integrated growers and with service providers will be maintained.
In addition, the agreement will result in the creation of a new business unit, JBS Chicken Brazil, with James Cleary as president and CEO.