Brazilian meat firm BRF plans to take a position round $160m in a brand new manufacturing unit in Jeddah, Saudi Arabia.
In a press release, BRF stated the funding will likely be made by way of BRF Arabia Holding Firm, a three way partnership between the meat large and the Halal Merchandise Improvement Firm (HPDC).
The JV was introduced in 2022, with BRF holding a 70% stake and HPDC, a wholly-owned subsidiary of the Kingdom’s sovereign wealth fund, the Public Funding Fund (PIF), proudly owning the remaining 30%.
Marcos Molina, controlling shareholder and chairman of the boards of administrators at BRF and fellow Brazil meat enterprise Marfrig, stated the deal “strengthens our operations in a extremely strategic market” and “consolidates our partnership with the Kingdom of Saudi Arabia in its meals security agenda”.
Marfrig holds a majority share in BRF after rising its holding in its native peer final yr having first invested within the enterprise in 2021.
The brand new BRF manufacturing unit is predicted to supply roughly 40,000t per yr of processed poultry- and beef-based merchandise, boosting the corporate’s native manufacturing from 17,000t to 57,000t yearly, it stated in a separate assertion.
Scheduled to start operations by mid-2026, the Jeddah facility is designed with future scalability in thoughts, probably doubling its manufacturing capability over time.
It’ll grow to be BRF’s third manufacturing unit in Saudi Arabia and its seventh within the Center East.
BRF, which owns the Sadia, Perdigão and Qualy manufacturers, plans to allocate $63m in direction of the funding in 2025, adopted by $98m in 2026.
HPDC CEO Fahad Alnuhait stated: “This new facility represents a serious step ahead in our technique to construct built-in halal manufacturing ecosystems. In partnership with BRF, this funding displays our continued efforts to advance Saudi Arabia’s place within the international halal economic system.”
The announcement follows BRF Arabia’s entry into halal hen manufacturing in Saudi Arabia, buying 26% of Addoha Poultry Firm.
BRF exports to over 14 nations within the area and operates a processed meals manufacturing unit in Dammam.
In 2024, BRF reported web gross sales of 61.37bn reais ($1.06bn), a rise of 14% in comparison with 2023.
The corporate posted web revenue of three.69bn reais versus a lack of 1.87bn reais in 2023.
Working revenue rose to six.77bn reais, greater than 11 instances greater than the 589m reais recorded in 2023.
