JBS has reversed its decision to close a meat facility in Pennsylvania, securing around 400 jobs amid a plan to invest in the site.
The Brazilian meat giant, which has just announced the return of Wesley Batista as its CEO from January next year, revealed its intention to close the Souderton beef factory in June.
At the time, the company said 1,784 people were employed at Souderton and were at risk of losing their jobs, although some would be offered positions elsewhere.
In a statement yesterday (10 August), JBS said it now plans to “transform” the Souderton plant, run by its local subsidiary JBS USA, into a “dedicated value-added operation”, saving around 400 jobs.
However, JBS added beef “harvesting and processing operations” would be halted from 14 August.
“Following the transition, JBS will invest more than $30 million over the next decade to modernise and enhance the Souderton facility's value-added and case-ready capabilities,” the company explained.
JBS said the decision to keep Souderton open was taken in consultation with JBS USA, Pennsylvania Governor Josh Shapiro and the Pennsylvania Department of Agriculture.
Batista, who is currently CEO of JBS USA, said: “This outcome allows us to preserve 400 good-paying jobs, strengthen our case-ready business, and continue serving customers in a key consumer market.”
Just Food has asked JBS to clarify what products will now be made at Souderton and the brands involved, as well as an explanation of what the investment will entail.
When the plans were announced in June to close the Souderton site, JBS also revealed it would shutter another facility in Memphis, Tennessee. Some 208 staff were set to lose their jobs.
JBS also reported a second-quarter loss of $102m alongside the CEO transition announcement, although sales rose 14% to $23.9bn. Elsewhere, EBITDA, operating income and EPS all fell.
Adjusted EBITDA dropped 18% on an IFRS basis to $1.43bn. In GAPP terms, the metric was down 8% at $1.26bn.
Adjusted operating income (IFRS) declined 34% to $790m and decreased 16% to $866m measured by GAAP.
JBS delivered an EPS loss of $0.10, compared to a profit of $0.48 a year earlier. Adjusted EPS more than halved to $0.20 from $0.52.
