Northern Beef Packers, L.P. Pursuing Additional Financing

Northern Beef Packers (NBP), a newly constructed beef processor, announced that it is in the process of securing investments for working capital and business expansion purposes. The company is working with a number of prospective investors. The negotiations are confidential at this time. The investors are additional foreign investors like those that have already funded a significant portion of the construction costs for its current plant, international trading companies, established food companies, and financial investors.

Until the new financing is in place, however, volume expansion has been put on hold and the company will have a shortterm layoff of some of its workforce starting next week. Of its 420 team members, around 108 will be laid off to reduce expenses. The company expects to call them back when the additional financing is secured.

David Palmer, President and CEO of the company says, “This is an unfortunate setback, but we are confident that this is only temporary. The employees at Northern Beef Packers have been our biggest asset thus far, and we expect to begin rehiring and expanding operations as soon as the additional financing is in place.”

Source: Northern Beef Packers