JBS gives details of new leather set-up
26/08/2011
Production will cease at the group’s tanneries in Rio Brilhante (in the state of Mato Grosso do Sul), Aguaí and Franca (São Paulo) and Estância Velha (Rio Grande do Sul). JBS says it is redirecting leather production from these sites to other tanneries that have new machinery, a better production layout, and geographical locations that will make internal logistics easier. The exercise will save the company an estimated $45 million a year.
It has invested more than $60 million in its tanneries in Cascavel (Paraná), Itumbiara (Goiás), Lins (São Paulo) and Uberlândia (Minas Gerais), equipping these facilities with more up-to-date technology, better working conditions and an improved environmental footprint. With the savings from the consolidation exercise, JBS expects pay-back on this investment in 16 months.
A statement signed by Roberto Motta da Silva, chief executive of JBS’s leather division, said the changes will allow tanneries to specialise in producing crust or finished leather and guarantee products that are “competitive in the market”.
The Cascavel tannery will have the capacity of 200,000 hides a month, 120,000 of which will be processed to finished stage and the rest to crust. Itumbiara will handle 220,000 hides a month 120,000 of them finished and 100,000 crust. The facilities at Lins and Uberlândia will concentrate on crust, with capacity to process 180,000 and 150,000 hides per month respectively.
In the statement, Mr Motta da Silva went on to say: “It is important to emphasise that the consolidation will not affect the production capacity in Brazil and JBS leather customers will remain being fully attended [to] through other plants, with better quality, punctuality and attention [to customer needs].”
He said there would be no change in the policy for purchasing raw materials and that it will purchase the same volumes as before, “causing no adjustments in the relationship with our suppliers or in the demands on the Brazilian Market”.
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