Tyson in poultry deals in China and Brazil
CHICAGO (Reuters) - Tyson Foods Inc (TSN.N) on Monday announced plans to buy a Brazilian poultry business and preliminary deals for two joint venture poultry operations in China, and said it has selected a site in Louisiana for a plant to turn animal fat into renewable fuel.
Tyson, the world's largest meat company, said in a statement it is also exploring ways to expand its chicken operations in Mexico.
The announcements were made during a meeting with analysts and investors on Monday.
Earlier on Monday, the company reported fourth-quarter earnings of $32 million, or 9 cents a share, versus a loss of $56 million, or 17 cents a share, a year earlier.
The poultry deals are part of Tyson's goal to increase its international sales to $5 billion by 2010 from an estimated $3 billion in 2007.
The Springdale, Arkansas-based company also has beef and pork operations.
Tyson said it has signed a letter of intent to buy a vertically integrated Brazilian poultry business, and expects to complete the purchase this year.
The two joint venture poultry operations in China will help make Tyson one of the first companies in China to offer a full line of poultry products, it said. The deals are expected to close in fiscal 2008.
No other details about the three transactions were released.
Tyson said it is considering expanding chicken production at its Mexico subsidiary, Tyson de Mexico, and sales in the region including Central America.
Construction of a $150 million renewable fuels production facility in Louisiana is due to start in 2008 under Dynamic Fuels LLC, a company created by Tyson and Syntroleum Corporation (SYNM.O) of Tulsa.
The plant, whose specific location was not disclosed, is expected to produce 75 million gallons of fuel a year from animal fat, greases and vegetable oils supplied by Tyson. The fuel will be usable in diesel engines or upgraded for use as jet fuel.
Tyson said it and ConocoPhillips (COP.N) continue to move forward with separate plans to convert animal fats into renewable diesel fuel. Tyson will initially provide beef tallow from its Amarillo, Texas, beef complex to the ConocoPhillips refinery in nearby Borger, Texas.
Capital investment for phase one, testing protocols and the establishment of pre-processing conditions are complete and production is due to start in December.
(Reporting by Bob Burgdorfer)
