Brazilian meat giant JBS has saved a processing plant in the US from closure via a lease agreement, with a view to taking full ownership of the site from J&B Group.
JBS said in a statement its US unit has reached an agreement with J&B Group to acquire the value-added meat plant in Pipestone, Minnesota, in the “upcoming months” for an undisclosed sum. The deal secures 130 jobs after J&B said in September it would shut the site amid plans to shift operations to St. Michael in the same state.
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The Brazilian firm plans to invest in the facility, which will cater to the US home market and overseas customers.
Bob Krebs, the chief operating officer for the JBS unit’s US pork division, said: “We are excited to welcome the Pipestone team members to JBS USA. We have worked with the J&B team under the common goals of preserving jobs and creating a sustainable future for the facility.
“We believe the facility’s infrastructure and accomplished workforce present a great opportunity to expand our ability to provide high-quality products to both domestic and export markets. We plan on investing in the facility and growing the business, allowing our new team members and the local community to grow with us.”
The Pipestone facility will give JBS added capacity in the US after the subsidiary revealed plans in May to expand operations at another site in Grand Island, Nebraska, with an investment of US$95m.
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