Marfrig buys its first industrial plant in China
Last week, the company announced the acquisition of a processing plant in Henan Province, China. "This transaction marks a significant step for the company, which will now have an industrial operation in the Chinese market, where it already sells animal proteins", the company said.
The first plant acquired by the Brazilians in China was built in 2013 and has two food processing lines, with a current capacity of 30 thousand tons per year and potential for expansion.
Nearly 80 million dollars will be invested in this new Marfrig adventure, of which 43 million will be used for the acquisition and the rest will be used for renovations and two hamburger lines.
For now, Marfrig's investment in China seems very ambitious. "These investments are expected to generate around 850 new jobs and an additional capacity of approximately 30 thousand tons per year, doubling the plant's capacity to reach 60 thousand tons per year. The forecast is that the new unit will be operating under the management of BRF in the first quarter of 2025", the company reported.
It was later explained that this purchase in China, where both Brazilian and Argentinean meat packing plants have their main businesses, "is aligned with the strategy of expanding the company's global presence by diversifying its operations and strengthening BRF's competitiveness, together with increasing the offer of value-added products".
"The investment represents a significant opportunity to expand the company’s customer base and boost sales. The creation of an export hub in this new location opens up opportunities to serve international markets more efficiently, optimizing logistics and facilitating distribution to other countries", BRF said in a press release.
It is clear that the strategy is to sell with a brand and added value: "The Sadia brand and the company's products will be present in various channels, including retail and food service, including large chains of global accounts. The possibility of further exploring the food service segment is a significant opportunity, especially in a growing market such as China, which is one of the most relevant, along with the Middle East and North Africa", the report added.
The enclave plant is located in Henan, a province in the Yellow River Valley in central China, known as the birthplace of Chinese civilization. It is the third most populous area in China, with around 100 million inhabitants.
The raw material used in this plant "may come from China or from the operations of BRF and Marfrig, which have export platforms in South America, with plants in Brazil, Argentine and Uruguay for the shipment of inputs, guaranteeing a continuous supply of excellent quality". In other words, it would not be unreasonable to think that Quickfood exports the same meat there for the production of its traditional Paty hamburgers.
In fact, Gustavo Kahl, CEO of Marfrig Argentine, said that "this acquisition represents a significant milestone for BRF and Marfrig. By integrating this plant into our operations, we not only expand our production capacity in that market, but it is also a greater opportunity to export raw materials from our units in Brazil, Argentine and Uruguay".
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