JBS, the world's leading meatpacker, has reopened a large Brazilian beef unit in Diamantino, Mato Grosso state, which had been closed after a fire in June, the company said.
JBS also announced it will invest an initial 300 million reais (€56.4 million), of a total investment of 800 million reais (€150.4 million), to transform the facility into Latin America's largest beef plant.
Once the expansion work is concluded, Diamantino will have capacity to process 3,600 head per day, the company said.
Cattle Production
The plant is located in Brazil's main cattle-producing state and will resume operations with an initial slaughtering capacity of 600 head per day, reaching 1,800 head in the coming weeks.
"With the completion of the restoration and expansion works of the unit, scheduled for January 2024, JBS will generate 1,600 new jobs in the region," Gilberto Xando, CEO of the JBS Brasil business unit, was quoted as saying in a statement.
In total, the company will have 3,000 workers on the site, divided into two shifts, the executive said.
Third-Quarter Performance
JBS recently announced a decrease in third-quarter profit and earnings before interest, tax, depreciation, and amortization (EBITDA), totaling 5.40 billion reais. The company attributed this decline to challenges in U.S. beef margins, a rebounding U.S. pork division, and excess global chicken supplies, it said in a statement.
During discussions with analysts regarding JBS' third-quarter results, company executives highlighted initiatives aimed at enhancing the operational performance of the Seara meats and processed foods division in Brazil.
Additional reporting by ESM
