JBS SA, the world’s largest meat producer, will reopen a Brazilian beef processing plant that had been shut down after a fire in June and turn it into the company’s largest in South America.
The Diamantino, Mato Grosso-based facility will resume operations on Monday with an initial cattle slaughtering capacity of 600 heads a day, with the goal of reaching 1,800 heads a day in the coming weeks, the Sao Paulo-based company said in a statement. The meatpacker plans to spend a total 800 million reais ($163 million) on the facility, with total capacity potentially reaching 3,600 heads a day through next year, a spokesman said.
The move comes at a time when cattle supplies are expanding in Brazil, which may help JBS mitigate the impact of a shortage in the US. Earlier this week, the company posted third-quarter profit that missed analysts’ estimates as earnings from its North American beef business tumbled. JBS shares are headed for a 2.9% increase this week, the seventh straight gain.
Read More: JBS Misses Estimates as Low Beef Margins Undermine Pork Gain
Author: Gerson Freitas Jr.
