J&B Group leases meat processing facility to JBS USA

Protein manufacturing firm J&B Group has signed a lease agreement with JBS USA for its meat processing facility in Pipestone, Minnesota, US.

Animal processing company JBS USA has also expressed interest in acquiring the facility at a later stage. The company proposes to save more than 130 jobs at the facility, which was destined for imminent closure.

JBS USA Pork COO Bob Krebs said: “We are excited to welcome the Pipestone team members to JBS USA. We have worked with the J&B team under the common goals of preserving jobs and creating a sustainable future for the facility.

“We believe the facility’s infrastructure and accomplished workforce present a great opportunity to expand our ability to provide high-quality products to both domestic and export markets. We plan on investing in the facility and growing the business, allowing our new team members and the local community to grow with us.”

In September, J&B Group unveiled plans to sell its Pipestone facility and move production activities to another facility located in St Michael, Minnesota. However, J&B could not find a buyer for the facility and planned to close it this month, before JBS USA offered to acquire.

JBS USA has not disclosed the price it intends to pay for acquiring the value-added meat processing facility. Once the acquisition is complete, it plans to place the facility on a growth trajectory.

In May, JBS USA unveiled a $95m expansion plan for its Grand Island, Nebraska, beef production facility.