The formation of a joint venture in Singapore between Brazil-based meat and poultry company BRF and Singapore Food Industries has been finalized, BRF announced on June 3. The new venture, to be known as SATS BRF Food, will create a food distribution and meat processing business that offers branded products initially for the Singapore market and later also for other parts of Southeast Asia.
Under the arrangement, which was previously announced in April, BRF is investing US$19 million in a new venture to run meat processing facilities in Singapore. BRF will have a 49 percent stake in SATS BRF Food, with Singapore Food Industries as the majority partner.
Singapore Food Industries is a wholly owned subsidiary of SATS Ltd of Singapore, which operates airport logistics and catering services in the region.
The transaction involves a transfer of operations from Singapore Food Industries, including two meat processing plants. The transaction is in line with BRF‘s strategic plan of globalizing the company by means of reaching local markets, strengthening BRF‘s brands and distributing and expanding its product portfolio around the globe, the Brazilian company stated.
Formerly known as Brasil Foods, BRF processes 1.83 billion birds annually, according to the WATT Global Media Top Companies Database. The company’s key product categories include chicken, turkey and pork.