Marfrig Global Foods announced it has sold its three meatpacking facilities located in Hughes, Vívoratá, and Unquillo, and one livestock confinement unit located in Monte Ralo, Argentina to Black Bamboo Enterprises, a subsidiary of China’s Foresun Group, for $75 million. In a company statement, Marfrig reveals that it has signed an “irrevocable agreement” with China’s Foresun accompanied by an initial payment of $34 million, with the balance to be paid in installments over the next 12 months.

Marfrig made the decision to divest the Argentinian assets in response to financial headwinds, which have prompted the company to implement its “focus to win” strategy under which it plans to streamline operations with a focus on the Asian and North American markets where it sees the most potential for growth. The group is targeting a reduction in its debt load by $1.2 billion by the end of 2016, according to Meat & Poultry, and has already sold its poultry processor, Moy Park Holdings Europe Ltd., to JBS in November 2015. It is also in the midst of talks regarding the sale of its U.S.-based Marfood beef jerky holdings.

“The assets sale does not mean that Marfrig is leaving Argentina,” Marfrig Global Foods’ CEO, Martin Secco told Global Meat News. “We recognize the importance of the country in the global meat market and continue to operate the Villa Mercedes meat plant in the province of San Luis, which currently processes 700 cattle a day.” Mr. Secco went on to add, “The new macroeconomic measures adopted by the Argentine government and the expectation of a recovery in local cattle stock should lead to a recovery in the market in the coming years.”