Tyson Foods, Inc. (NYSE: TSN) announced yesterday that it is moving forward with its strategy to grow the company’s chicken business internationally with two major acquisitions in Mexico, groundbreaking of a joint venture in the People’s Republic of China, and the opening of a joint venture facility in Panama.
Greg Huett, president of Tyson’s International Operations announced that in Mexico, Tyson has entered into an agreement that allows Tyson to purchase the interests of the Villegas family in Tyson de Mexico, S.A.de C.V. Tyson de Mexico, S.A.de C.V., based in Gomez Palacio, Durango, Mexico, was founded as Trasgo ,S.A.de C.V. by the Villegas family. Tyson entered into a joint venture with Trasgo, S.A.de C.V. in 1989, and in 1994, acquired a majority interest. The company was later renamed Tyson de Mexico, S.A.de C.V. With the acquisition of the interests of the Villegas family, Tyson will own 95% of the common stock of Tyson de Mexico, S.A.de C.V.
Additionally, Tyson de Mexico, S.A.de C.V. has purchased the poultry assets of Nochistongo S.P.R. de R.L., a fully-integrated broiler production operation with a capacity of approximately 500,000 birds per week, also located in Gomez Palacio. Nochistongo S.P.R. de R.L. markets products under the Kory brand.
With the addition of the Nochistongo S.P.R. de R.L. facilities, Tyson de Mexico, SA.de C.V. will have the capacity to process approximately 2.2 million birds per week. Tyson de Mexico, S.A.de C.V. products are sold to retail and foodservice customers in Mexico and Latin America.
Tyson has also signed a joint venture agreement with Chinese partner Zhucheng Da Long Enterprises Co., Ltd. to own and operate a further processing plant in China. The plant, located in the Shandong Province, is expected to be operational in September of this year. Par-fried, breaded, and boneless leg meat products from the plant will be marketed into Japan, other countries in the Pacific Rim, and certain countries in the Middle East. The plant will have the capacity to produce 20,000 metric tons annually.
Tyson Foods’ joint venture operation in Panama City, Panama with Alimentos Procesados Melo, S.A., announced in April of 2000, has begun processing in a new facility.
The plant will produce a wide range of products, from fresh to fully- cooked, which will meet or exceed the high quality of USDA standards. Both foodservice and retail markets in neighboring South and Central America will be serviced.
According to Greg Huett, “These efforts move us quickly forward along our strategy of producing quality products for our worldwide customers from cost effective global locations.”
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