20/11/2024 15h41

Investment of approximately BRL 460 million marks the beginning of industrial operations in the chinese market, where the Company already has a commercial presence

BRF, one of the largest food companies in the world and owner of Sadia, Perdigão and Qualy brands, announces the acquisition of a modern processed foods plant in Henan province, China. The transaction represents a significant step forward for the company, which now has an industrial operation in the chinese market, where it already sells animal protein. Built in 2013, the facility has two food processing lines, with a current capacity of approximately 30,000 tons per year and potential for expansion. Around BRL 460 million (580 RMB) will be invested, of which BRL 250 million (310 RMB) will be used for the acquisition and the balance in capex for adjustments and the expansion of two burger production lines. The investments are expected to create approximately 850 new jobs and double the plant’s capacity to around 60,000 tons per year. The new production unit is scheduled to begin operations under BRF management in the first quarter of 2025.

The acquisition is in line with the company’s strategy of expanding its global presence by diversifying its footprint and strengthening BRF’s competitiveness by advancing its offer of value-added products. The facility’s processed food line will enable the company to respond more effectively to regional demands. Additionally, it provides direct access to the chinese market, one of the world's largest protein consumer markets.

This investment presents a significant opportunity to expand the company’s client base and boost sales. The decision also promotes the use of Brazilian raw materials, adding value to local resources and reinforcing sustainable, high-quality value chains.

The creation of an export hub in this location opens opportunities to serve international markets more efficiently by optimizing logistics and facilitating distribution to other countries. BRF’s commercial platform, including strategically located clients and commercial offices, will be a key differentiator in this process. The company’s brands, led by the global Sadia brand, and its products will be available across multiple channels, including retail and food service, including large global account networks. The possibility of further exploring the food service segment is a significant opportunity, particularly in a growing market like China, which is one of the most relevant along with the Middle East and North Africa.

The plant is in Henan, a province in the Yellow River Valley in central China, considered the birthplace of Chinese civilization. It’s the third most populous area in China, with around 100 million inhabitants. This region provides strategic access to a high-potential market. Raw materials for the plant may be sourced both locally in China and from BRF and Marfrig operations. BRF and Marfrig plants in Brazil, Argentina, and Uruguay are authorized to supply raw materials, ensuring a continuous and high-quality supply.

Strategic potential

Henan, one of China’s most populous provinces and the fifth-largest economy, stands out as a strategic logistics hub. The province plays a crucial role in the transportation of goods, connecting the country’s northern and southern regions via a robust, well-distributed infrastructure. Henan boasts 266,000 km of roadways, including 7,000 km of expressways, 6,500 km of railways, and 1,400 km of high-speed railways. Its two international airports further enhance the province’s role as a major logistics center.

About BRF

As one of the world’s largest food companies, BRF operates in over 120 countries. Its mission is to provide increasingly delicious and convenient food – for people and pets worldwide – through the sustainable management of its supply chain, from farm to table. Owner of leading brands like Sadia, Perdigão, and Qualy, the company’s actions are guided by fundamental commitments to safety, quality, and integrity. BRF’s strategy is based on a long-term vision to generate value for nearly 100,000 employees worldwide, over 415,000 clients, approximately 9,500 integrated producers in Brazil, all its shareholders, and society.