Brasil Foods mulls new brands at $120m UAE factory

Brazilian food giant says new facility will be based in Dubai or Abu Dhabi, to start ops in late 2012
Brasil Foods mulls new brands at $120m UAE factory
Brasil Foods is planning to invest $120m in a new processing factory in the UAE, with operations slated to start late next year. (Getty Images - for illustrative purposes only)
By Andy Sambidge
Sat 03 Sep 2011 01:12 PM

Brasil Foods may look to launch new brands in the Middle East once it establishes a new factory in the UAE next year, a senior company official has said.

The $120m factory will be built in either Dubai or Abu Dhabi and should be operational by the end of 2012, vice president for corporate affairs, Wilson Mello, said in comments published by the Arab Brazil News Agency.

The factory for Brasil Foods, the owner of brands Sadia and Perdigao, will produce 60 percent of local demand for company products, he added.

The raw material will be supplied by Brazil, but the labour will be local, he said.

“Brasil Foods may develop other product lines and even local brands,” said the executive.

The factory’s processing capacity will be 80,000 tonnes of food a year which will be key in supplying the Middle East, the second biggest market for Brazilian chicken.

According to Mello, Sadia and Perdix are already leading brands in the Middle East.

"Both brands really do have an important presence in the region and under our strategy, the significance of either should not decrease. Still, based on local production, Brasil Foods may develop other product lines and even local brands," he told ABNA.

"The Middle East is a very important market, in which we have been active for over 35 years now. Right now, the Middle East accounts for nearly 32 percent of the company’s exports.

"We have established brands in many of the region’s countries. And the same as with the building of the factory, we are certain that our local presence will contribute even further to boost our business in that market."

Its products are currently exported to the UAE, Saudi Arabia, Egypt, Kuwait, Qatar, Bahrain, Iraq, Jordan, Lebanon and Iran.

Brasil Foods has a workforce of 113,000, making it one of the largest employers in Brazil. In 2010, it sold 5.7 million tonnes of product and reported net sales of more than $14 billion.

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