Brazilian meatpacker moving out of Argentina sells plant to local government

JBS will receive 15 million now and the rest in up to one year. The unit had been bought by JBS in 2006 and was not operating since 2009.
“JBS is trying to make its operations in Argentina viable, aiming to serve clients in the local and external markets in the best way according to the rules established by the local authorities,” JBS said in the statement.
JBS first landed in Argentine in early 2005 with hopes of taking a share of the lucrative beef business in Argentina with its 60 million herd of top quality cattle. However only a year later the whole plan began to collapse as the Nestor Kirchner administration set caps on beef prices and banned exports to favour the domestic market.
That is how of its eight abattoirs and processing plants there was only enough work for only one, forcing the closure of the rest, including the one in San Jose, Entre Rios.
For several months the government of Entre Rios was attempting to reopen the plant and finally managed with a 70 million Pesos (approx 15.5 million dollars) loan from the Bicentennial Fund. The rest was up to the local cooperatives.
The plant under the name of Entre Rios Cattle Processor will now be put back into operation with the provincial government holding an 85% stake and the remaining 15%, the cattle and poultry cooperatives.(mercopress)