Kuo to invest US$350 million in Mexico pig meat sector
Mexican company intends to double pork output over next 5 years
Mexican conglomerate Kuo Group has announced plans to double its pork output over the next 5 years with investments totaling US$350 million. The company says it is positioning its pork business, known as Kekén, to take advantage of the forecast growth in domestic pig meat consumption.
According to Aristigui Noticias, Kuo’s pork business generated about 24 percent of its total revenues last year.
The latest investment will be used to construct two state-of-the-art plants -- one food and other processing -- as well as opening new farms and 300 more of its Maxicarne retail shops, bringing the total to 650 and making it the largest in the country. Live production will rise by around 65 percent with 120,000 sows, and the new plant will have an annual capacity of 2 million animals.
“With this project, our pork business revenue will reach about US$1 billion,” the company said in a statement to the Mexican stock exchange. It added that its pig meat exports are forecast to increase by around US$100 million to US$350 million.
“This will be one of the most important investments in the Mexican pork industry,” said Alejandro de la Barreda, director general of Kuo Group. “It is a large-scale project that will strengthen our presence in a market with high growth potential as well as expanding our robust export platform for pork. This will add sustainable value for all our stakeholders.”
The 5-year investment plan for Kekén will be centered in the state of Yucatan.
Kuo takes full ownership of Nutricarsa pork processing plant
On its web site earlier this month, Kuo Group announced it had acquired Cargill’s stake in Nutricarsa, the pig meat processing plant that the two companies had jointly operated in Uman in Yucatan State. Its annual capacity is 480,000 metric tons.
“The closing of this transaction will allow us to control a key part of our production network, optimize the supply of food for our pork business and streamline our decision-making processes that contribute to the generation of value,” commented Alejandro de la Barreda Gómez.
Kuo Group (Grupo Kuo) is a leading industrial conglomerate in Mexico, with annual sales amounting more than US$1.8 billion as of December 31, 2015. As well as its pork interests, Kuo also has business units covering Herdez Del Fuerte JV (brand processed foods), Synthetic Rubber, Polystyrene, Aftermarket and Transmissions. It exports to around 70 countries and has around 18,000 employees.
Alejandro de la Barreda Gómez was promoted to his position in January this year from deputy managing director of the Kuo Group, where his responsibilities had included oversight of Kekén.