Brazil meatpacker JBS to spend $100 million to build 2 factories in Vietnam
By Patricia Vilas Boas
(Reuters) - Brazilian meatpacker JBS announced on Saturday that it will invest US$100 million to build two factories in Vietnam, aiming to expand its presence in Southeast Asia and strengthen its position in the global market.
According to a statement from the company, the plants will produce beef, pork and poultry, and will mainly use raw materials imported from Brazil. The goal is to supply Vietnam and other countries in the region.
The agreement was formalized on Saturday through a memorandum of understanding with the Vietnamese government, JBS said. Reuters reported last week that JBS was considering the deal.
The deal was sealed during a state visit by Brazilian President Luiz Inácio Lula da Silva to Vietnam, in which the opening of the Vietnamese market to Brazilian meat was announced. JBS was part of the business delegation accompanying the president.
"The new plants in Vietnam will not only be an expansion of production capacity, but an investment with a purpose: to generate value for the local economy, create skilled jobs, and contribute to food security throughout Southeast Asia," said Renato Costa, the CEO for Friboi, JBS' beef division, in the statement. Friboi presents itself as a leader in the beef market in Brazil.
According to the plan announced by JBS, the first facility will be built in Khu công nghiệp Nam Đình Vũ, including a logistics center with storage capacity, covering pre-processing, cutting and packaging activities.
The agreement projects the second factory will be built in the south of Vietnam two years after the first facility starts operations. It will include similar infrastructure, including a logistics center and a processing plant.
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