Brazilian meat and dairy group Perdigao is to build a powdered milk processing plant in the state of Rio Grande do Sul.

The company said the plant, which will be located in Três de Maio, 500km from the city of Porto Alegre, will take 20 months to build and cost BRL65m (US$39.7m).

The facility will be Perdigao's second unit in Três de Maio, where it already runs a site that produces mozzarella.

The plant will also be the company's sixth powdered milk site in Brazil.