May 31, 2013

Marfrig to close chicken plant in Brazil


Effective June 20, Marfrig Group will close down a Seara Foods chicken processing plant based in the Brazilian city of Caxias do Sul (Rio Grande do Sul state).


The plant has a poultry slaughter facility, incubators, a feed mill and storage unit. The company's turkey processing plant, based in the same city, will still continue under operation.


The chicken plant closure "seeks to improve Seara Foods' efficiency" in Brazil, the company said.


Another four Marfrig plants will also be closed in Brazil and its production activities will be relocated to other ones.


Marfrig will close two of its cattle production plants based in Argentina, along with its distribution centres. The company expects, through the closures, to reduce its gross debt which is almost at US$6.3 billion.


"Research showed the need to close the chicken processing plant in Caxias do Sul whose economic viability was affected by the high cost of grain, feed, logistics and manpower," Marfrig said in a statement.


Marfrig reported that, as a result, approximately 540 employees will be laid off and another 150 would be transferred to either the turkey processing plant or other plants within Rio Grande do Sul state.

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