BRF has signed a non-binding memorandum of understanding with the Saudi Arabian General Investment Authority about the construction and operation of a chicken processing plant in Saudi Arabia.
According to an announcement to the market on the investor relations page of the BRF website, the company intends to invest about US$120 million on the facility, which would enable BRF to expand and consolidate its presence in the Saudi market. The announcement was signed by Carlos Alberto Bezerra de Moura, BRF’s chief financial and investor relations officer.
BRF expects to process breaded and marinated products, hamburgers and other products at the plant. The majority of the products from the planned plant are expected to enter the Saudi marketplace, but they are also looking at exporting those products to other neighboring countries.
The company has not yet established the location, capacity, investment schedule or capital structure for the planned facility, but it stated in the notice that those conditions would be established soon.
Headquartered in Brazil, BRF is the third largest poultry company in the world, trailing Brazil-based JBS and U.S.-based Tyson Foods.
BRF recently divested of assets in Europe, Argentina and Thailand in order to focus on the Brazil market, as well as in markets such as Saudi Arabia that have a high Muslim population. Tyson Foods acquired BRF’s assets in Thailand, the United Kingdom and the Netherlands in June.
Earlier in 2019, BRF, also a major pork company, was in talks with rival Brazilian meat company Marfrig Global Foods. Those talks ended in July, but BRF CEO Lorival Luz said the company he oversees is still interested in other mergers or strategic partnerships that would give it a meaningful presence in the beef industry.
According to the WATTAgNet Top Poultry Companies Database, BRF, formerly known as Brasil Foods, slaughters about 1.63 million chickens annually.
