The company will invest $30 million in an Iowa poultry farm and egg products plant.
Cham Food (Israel) Ltd. (TASE:CHAM) unit Primera is setting up a poultry and egg joint venture in Wright, Iowa, at an investment of $60 million. The parties will own the venture in equal shares; Cham's investment will total $30 million.
Cham Foods operates in Israel, Turkey, and the US. Its US activity is handled through Primera, a manufacturer of powdered eggs and egg products, which accounts for 66% of its revenue. The joint venture will have four million chickens and an egg breaking factory that will produce the raw materials for the plant. The Iowa Poultry Association will manage the enterprise.
Primera estimates that it can finance 70% of the investment in the venture with bank loans. Construction of the project will begin next spring and take three years.
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2008
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