June 6, 2012

JBS to lease poultry plants from Doux

JBS SA has arranged to lease plants from Groupe Doux to increase its poultry processing capacity in Brazil.

JBS, which is second only to Tyson Foods Inc. in poultry production, is leasing the plants with the goal of increasing its chicken processing capacity by 15% and diversifying from beef, said the Bloomberg report.

JBS said they will not assume any debt belonging to Group Doux. Group Doux, which is based in Chateaulin, France, appears to be nearing a pullout from Brazil. The company has already shut down two poultry processing plants in the Brazilian state of Rio Grande do Sul.