Key Players and Background Information
BRF, a leading Brazilian meat processing company, and the Halal Products Development Company (HPDC), a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), have announced a $160 million investment in a new food processing plant in Saudi Arabia.
BRF is a global food company with operations in over 120 countries, known for its brands Sadia, Perdigão, and Qualy. The company employs nearly 100,000 people worldwide and works with around 9,000 integrated producers in Brazil. BRF focuses on sustainable food production from farm to table for both humans and pets.
Investment Details
The new plant, set to begin operations in mid-2026, will be constructed in Yeda, Saudi Arabia through BRF Arabia Holding Company, a joint venture between BRF and HPDC established in 2023.
The facility will have an annual production capacity of approximately 40,000 metric tons, initially targeting the Saudi market while also considering exports to other regional countries.
BRF’s Global Expansion Strategy
According to Marcos Molina, President of BRF, “This investment is another significant step in our global presence strategy and strengthens our operations in a highly strategic market.”
This new facility will be BRF’s seventh production unit in the Middle East and its third in Saudi Arabia.
Joint Venture and Ownership
In August 2023, BRF announced the creation of a joint venture with Halal Products Development Company (HPDC), a subsidiary of Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund. The joint venture vehicle, BRF Arabia, was established on December 10, 2023, with BRF owning 70% and HPDC holding 30%.
Key Questions and Answers
- Who are the main players involved in this investment? BRF, a Brazilian meat processing company, and the Halal Products Development Company (HPDC), a subsidiary of Saudi Arabia’s Public Investment Fund (PIF).
- What is the purpose of this investment? To build a new food processing plant in Saudi Arabia, with an initial focus on serving the local market and potential exports to other regional countries.
- What is BRF’s global presence and mission? BRF is a global food company present in over 120 countries, committed to sustainable food production from farm to table for both humans and pets. The company owns popular brands like Sadia, Perdigão, and Qualy.
- What is the joint venture agreement between BRF and HPDC? The joint venture, established in August 2023, created BRF Arabia, with BRF owning 70% and HPDC holding 30%. The new food processing plant in Saudi Arabia is part of this joint venture.
