Meat producer JBS is branching into a new line of business as part of an agreement with three other companies to produce, process and commercialize leather.

The Brazilian company said Tuesday the new entity will go by the name JBS Viva, and involves Viva Holding, Vanz Holding and Viposa Participações in addition to JBS.

The new company will be owned in equal parts by JBS and Viva, who will each own 50% of shares.

JBS Viva will also have parity governance, with the board composed of six members, three from each company. JBS will appoint the board chair and chief financial officer, while Viva will name the chief executive and chief operating officer.

JBS plans to supply the new venture with raw hides produced by its slaughterhouses in Brazil.

JBS Viva will then agree to sell JBS the corresponding volume of trimmings and shavings generated during the processing of the supplied leather, which will be used for JBS's gelatin and collagen-related products.