Brazilian food company BRF has announced plans to build and operate a chicken processing plant in Saudi Arabia with an investment of approximately $120m.
The company signed a non-binding memorandum of understanding with the Saudi Arabian General Investment Authority (SAGIA).
The investment is expected to expand and strengthen the presence of the Brazilian company in Saudi Arabia.
In its SEC filing, BRF noted that it will use the new chicken processing facility for a wide range of products, including hamburgers and breaded chicken.
The company has not finalised the capacity, investment schedule, capital structure or location for its new facility.
It intends to focus on these aspects during the specification phase of the project.
BRF also noted that it will release further details about the project at a later stage to its shareholders and the market.
Since the 1970s, the company has been supplying its products to the Middle East. Its products are retailed primarily under the Sadia brand.
In 2016, BRF established a new subsidiary, OneFoods, which has been dedicated to produce, distribute and sell halal products in the region.
Last month, BRF signed an agreement with SATS Food Services to sell its remaining 49% stake in SATS BRF Food (SBRF) joint venture (JV) in Singapore.
BRF divested its stake in SBRF for a consideration of S$17m ($12.2m).
