Arkansas-based Tyson Foods is planning to close two of its prepared foods manufacturing plants as part of its efforts to enhance overall performance and streamline operations.
The company's plants that will discontinue operations are the pepperoni plant in Jefferson, Wisconsin and the prepared foods facility in Illinois, Chicago, which makes ready meals for the hospitality industry.
The operations at both the plants will discontinue in the second half of fiscal 2016, which ends on 1 October 2016. The move will affect 880 employees, of which 480 are placed in the Chicago facility and around 400 work at the Wisconsin plant.
Tyson Foods North American operations president Donnie King said: "We examined many options before we turned down this road. This affects the lives of our team members and their families, making it a very difficult decision. But after long and careful consideration, we've determined we can better serve our customers by shifting production and equipment to more modern and efficient locations."
Several factors have been attributed as reasons for the plant closures. Changing consumer needs, ageing of both factories, and the exorbitant renovation costs, distance of the Chicago plant from its raw materials supply base, all were adjudged to be factors that led to the facility closures.
Tyson Foods said that it would assist the redundant workers to apply for positions within the company and that it plans to collaborate with state officials regarding informing the workers about their employment benefits and any re-training opportunities in future.
Tyson Foods purchased the Chicago plant in 1994. At the time of its acquisition, it produced meals exclusively for airlines. Currently, the plant manufactures Tempura chicken, meatballs, crepes, omelets, soups, sauces and Chicken Cordon Bleu.
The company purchased the Jefferson facility as part of its IBP takeover in 2001. The plant produces sliced pepperoni and ham for pizza toppings and sliced pepperoni and salami for deli and foodservice applications. The Jefferson facility was set up in 1875 by the Stoppenbach Family, processing beef, pork and lamb. It was later sold to Bauch and Tensfeldt families in 1934. In the early 1970s, the plant was converted to processing only pepperoni for the pizza industry. In 1985, the facility was sold to Doskocil Foods, which changed its name to Foodbrands America and was acquired by IBP in 1997.
In July, the company had announced plans to create 90 additional jobs at its poultry plant in Robards, in the US state of Kentucky. The company planned to invest over $8m in a new freezer and additional work stations at the facility.
Image: Tyson Foods to close pepperoni plant in Jefferson. Photo: Courtesy of KEKO64/FreeDigitalPhotos.net.
