April 16, 2007

Brazil's Perdigao to build new beef unit

Brazilian meatpacker Perdigao (PDA) will invest some of the 800 million Brazilian reals (US$396 million) it made from a 2006 initial public offering (IPO) in a new beef-processing facility, the company said Friday (April 13).

The new unit would be built in centre west of Brazil.

Perdigao chief executive officer Nildemar Secches said it was building a new meat-packing facility will be cheaper than acquiring a new one.

Perdigao also said it would dedicate part of the cash from the IPO to acquire chicken-meat packing plants in Europe and Asia. The regions account for 28 percent and 22 percent of Perdigao's chicken meat export market, respectively.

Secches also said that Mauricio Botelho, outgoing CEO of Brazilian aerospace company Embraer (ERJ), will become part of Perdigao's board of directors later this year.

Embraer is one of Brazil's most high-tech, high-value exporters.

Perdigao is Brazil's second largest meat company behind Sadia (SDA). Both Perdigao and Sadia said this year that they would be investing in new beef- packing units for the domestic and export markets.