November 1, 2006

Brazil's Sadia invests in meat plants after unsuccessful takeover bid
 

Brazilian meat processing giant Sadia has announced plans to invest 750 million reals (US$350 million) to expand its meat production facility in Mato Grosso and its plant in Russia.

Sadia is Brazil's largest poultry processor with a turnover of Reals 8.5 billion.

Sadia's chairman, Walter Fontana Filho, said Sadia would not be making fresh bids to take over rival Perdigao. The latter had fended off a hostile bid in July.

Sadia is now concentrating on expanding its plant in the central western province of Mato Grosso do Sul and diverting more money into a meat facility in Russia currently under construction. Sadia now aims to make the company more competitive internationally diverging from its intended path of domestic expansion when it tried to acquire Perdigao.