Brazilian beef processor Independencia SA is shutting three units and laying off 1,400 workers in response to lower demand for beef and falling prices, the privately-owned company said on Wednesday, according to Reuters.
The firm is closing a slaughter house and deboning plant in Mato Grosso as well as a deboning plant and a distribution center, both in Sao Paulo state. In March, the company announced it was closing two other factories, in Goias and Mato Grosso do Sul states, Reuters reported.
The closures come a month after the company commenced a restructuring process under Brazilian and U.S. insolvency laws. (See Brazilian beef company files U.S. bankruptcy proceeding on Meatingplace.com, March 3, 2009.)
"The closure of these units is part of an ongoing program to adjust Independencia's operations to the current market reality, which was severely hit by lower international demand, meat oversupply both in the domestic and the export market, and falling meat prices," Independencia said in a statement.
Since the beginning of what the company called its "adjustment program," Independencia has closed eight of its 23 plants and laid off 6,200 workers, according to Reuters.
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