The BRF Board of Directors has approved an investment of up to US$160 million for the construction of a new processing plant in Jeddah, Saudi Arabia.
The company announced the plans on April 21, both in the form of a press release and an announcement to the market on its investor relations webpage.
The project will be carried out through BRF Arabia Holding Company, which is a joint venture between Brazil-based BRF and the Halal Products Development Company (HPDC). HPDC is a subsidiary of the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund.
The plant, which is scheduled to begin operations in mid-2006, will have a production capacity of approximately 40,000 tons per year of halal processed poultry- and beef-based products.
Initially, production will be mainly destined for the Saudi market, with the possibility of exporting to other countries in the region. The plant has been designed to allow for future expansion, doubling the initial capacity. The new operation will be BRF's seventh production unit in the Middle East and the third in Saudi Arabia.
The operation is expected to generate more than 500 direct jobs in the region and will initially use raw materials from Brazil. The investment schedule is planned for 2025 and 2026, with disbursements of approximately US$63 million in 2025 and US$98 million in 2026.
“The investment represents another consistent advance in our global presence strategy and strengthens our operations in a highly strategic market for the company, as well as consolidates our partnership with the Kingdom of Saudi Arabia in its food safety agenda,” said Marcos Molina, controlling shareholder and chairman of the BRF board.
While Fahad Alnuhait, CEO of HPDC, stated: “This new facility represents a major step forward in our strategy to build integrated halal manufacturing ecosystems. In partnership with BRF, this investment reflects our continued efforts to advance Saudi Arabia’s position in the global halal economy. The plant will not only meet growing domestic demand for further processed products but also reduce the Kingdom’s reliance on imported goods by offering high-quality, locally manufactured alternatives. It directly supports HPDC’s broader mandate to develop the halal ecosystem and position the Kingdom as the global hub for halal products. Moreover, it aligns with our commitment to strengthen local manufacturing capabilities, drive self-sufficiency, and create high-value job opportunities, contributing meaningfully to the sustainability and economic diversification goals of Vision 2030."
The announcement follows another recent investment in Saudi Arabia, when BRF acquired 26% of Addoha Poultry Company.
BRF, according to information from the WATTPoultry.com Top Poultry Companies Database, is the world’s third largest poultry producer, having slaughtered 1.67 billion broilers during the past year. It is also the world’s 14th largest feed company, having produced 9.6 million metric tons of animal feed during the past year.
