JBS to purchase J&B Group’s meat processing plant in Minnesota

USA – Meat and meat products processor, JBS USA has secured a lease agreement with a J&B Group to acquire its value-added beef processing facility in Pipestone, Minnesota in the US.

The JBS SA subsidiary said it plans to acquire the facility in the upcoming months for an undisclosed amount.

“We are excited to welcome the Pipestone team members to JBS USA,” said Bob Krebs, chief operating officer, JBS USA Pork.

“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 this year, the J&B Group had unveiled plans of selling the production facility and relocate workers and its resources to a St. Michael, Minnesotta, processing plant before the JBS USA purchase.

The company did not identify a buyer and the facility was scheduled to close by the end of December.

J&B has owned the Pipestone meat processing facility for 12 years employing 145 people at the site. J&B said that the sale of the plant would enable the company to consolidate its operations.

“The decision to sell the Pipestone facility is a result of a number of factors; a change in the product portfolio, the investment of US$7.2m in anticipation of new business that did not materialize and our desire to invest in infrastructure at the St. Michael facility,” said J&B President Chuck Weum.

“By consolidating our operations, we gain efficiencies that will allow us to capitalize on growth opportunities while creating value in the marketplace.”

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