Bloomberg News

Marfrig Fined 1 Million Reais for Accident in Brazil Plant

February 02, 2012

(Updates share price in sixth paragraph.)

Feb. 1 (Bloomberg) -- Marfrig Alimentos SA, Latin America’s second-largest beef producer, was fined 1 million reais ($572,000) for a toxic gas leak in a leather-tanning plant in central-western Brazil that killed four workers.

Marfrig was fined for the emission of gases that are harmful to human health in the accident yesterday, Ednilson Paulino Queiroz, a Mato Grosso do Sul state environmental agent, said today by telephone from state capital Campo Grande. The state’s police is investigating the deaths.

The leak at the Bataguassu plant left another 20 people overcome by fumes, three of whom are still in hospital, Sao Paulo-based Marfrig said in an e-mailed statement today. The plant has been shut while the cause of the accident is investigated, Marfrig said.

Marfrig declined to comment on the fine in an e-mailed response to questions.

The meatpacker led by Chief Executive Officer Marcos Antonio Molina is a leather supplier to automakers Volkswagen AG and General Motors Co. and has the capacity to produce about 14,000 pieces of leather a day, according to its website.

Marfrig rose 3 percent to 8.26 reais in Sao Paulo trading at 2:29 p.m. Before today, the stock dropped 4.5 percent this year, while Brazil’s benchmark Bovespa index gained 11 percent.

JBS SA is the world’s largest beef producer.

--Editors: Carlos Caminada, Robin Saponar

To contact the reporter on this story: Lucia Kassai in Sao Paulo at

To contact the editor responsible for this story: Dale Crofts at

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