BRF to buy food processing plant in China from OSI Group

Newswire

Beijing: BRF has signed an agreement with OSI Group subsidiary Henan Best Foods to purchase a processed foods plant in the Henan Province of China.

Th potential transaction is valued at US$43 million, BRF revealed in an announcement to the market, which can be found on the company’s investor relations webpage.

The plant was built in 2013 and has two processing lines with an annual capacity of 28,000 tons and the potential to have two lines added.

Such an expansion is planned, and that expansion project would require an additional investment of approximately US$36 million. However, when completed, the plant would more than double its capacity to 60,000 tons, and it would lead to the creation of 850 new jobs, the BRF announcement stated.

The completion of the transaction is subject to regulatory approvals and corporate restructuring of assets that include the plant.

BRF, headquartered in Brazil, is the world’s third-largest broiler producer. According to the WATTPoultry.com Top Poultry Companies Database, it produced 1.67 billion broilers during the past year. As a feed producer, it ranks as the 14th largest in the world, having produced 11 million metric tons of feed during the past year.

OSI Group, headquartered in the United States, is the world’s 32nd largest poultry producer, having produced 325 million broilers during the past year through its U.S. subsidiary Amick Farms, its Australian subsidiary Turosi and its Chinese Subsidiary, Otto & Sons Weihai. It also ranks as the world’s 92nd largest feed company, having produced 1.7 million metric tons of feed during the past year.