JBS, the meat giant, has announced plans to invest 15 billion reais ($3bn) in expanding its operations in Brazil, as part of a broader program by its parent company, J&F Group. The investment, which is set to be implemented by 2026, is aimed at strengthening JBS’s presence in its home market.
CEO Gilberto Tomazoni revealed the investment targets during the opening of two value-added food production facilities in Rolândia. These facilities, which include fresh meat and prepared food projects, were previously announced in 2021. The investment in the meat division was initially targeted at 3 billion reais, but this will now increase to support the expansion plans.
In addition to the investment in Brazil, JBS also has plans for a dual listing in the US, which could further boost its investment budget. If the listing is completed, the total investment is expected to reach 50 billion reais. JBS had previously considered a New York listing in 2017, but the plans were shelved due to a corruption scandal involving its controlling shareholder, J&F Investimentos.
The expansion plans are not just limited to financial investments. J&F Group aims to create 50,000 additional jobs by 2026, with 20,000 of those positions at JBS. The company already employs 180,000 people in Brazil and 280,000 worldwide, operating in 500 factories.
The recent openings of two new facilities in Rolândia are part of JBS’s strategy to expand its product offerings. The investment will allow the JBS Seara brand to grow its breaded chicken products and sausage range. The new plants cover a large area and employ 4,500 staff, contributing to the local economy.
Despite recent financial challenges, including a net loss in the second quarter of 2023, JBS remains committed to its growth plans. CEO Gilberto Tomazoni believes that a dual listing in the US will help diversify and expand the company’s product portfolio, reduce costs, and generate greater returns for shareholders. This strategy aligns with JBS’s goal of becoming a major player in the food and beverage industry.
In conclusion, JBS’s investment plans in Brazil, coupled with the potential dual listing in the US, demonstrate the company’s commitment to growth and expansion. By focusing on product diversification and operational efficiency, JBS aims to strengthen its position in the global food and beverage market.
