Sector News

Tyson Foods to close two plants

November 20, 2015
Food & Drink

Tyson Foods Inc. on Thursday announced plans to close two aging prepared-food plants, in the face of prohibitive renovation costs and changing demand.

About 880 workers would be affected by the closures of the plants in Jefferson, Wis., and Chicago. The meat-processing company said the workers—about 480 in Chicago and about 400 in Jefferson—are being encouraged to apply for other openings within the company.

“We examined many options before we turned down this road,” Donnie King, Tyson’s president of North American operations, said in a statement. “This affects the lives of our team members and their families, making it a very difficult decision.”

The Chicago plant, which had been acquired by Tyson in 1994 and originally made meals for airlines, now produces meatballs, crepes, omelets and soups, among other products.

The Wisconsin facility was founded in 1875 as a processing facility for beef, pork and lamb. It currently produces sliced ham and pepperoni for pizza toppings and sliced pepperoni and salami for delicatessens.

The closures come as Tyson continues to remake itself after its 2014 acquisition of Hillshire Brands Co. Shortly after the announcement of the acquisition, Tyson announced in July 2014 that it was closing three prepared-food plants. In recent quarters, revenue growth in the prepared-food division has led the company’s top-line growth, primarily as a result of the Hillshire acquisition.

In August, the company announced it was closing a 400-person beef-processing plant in Iowa, citing declining U.S. cattle herds.

In October, Tyson announced it was raising hourly wages for 34,000 employees at its U.S. chicken plants to better attract and retain workers.

By Austen Hufford

Source: Wall Street Journal

comments closed

Related News

September 17, 2022

Coca-Cola chief platform services officer to step down

Food & Drink

Barry Simpson is stepping down from his position as chief platform services officer and senior vice president at the Coca-Cola Co. Mr. Simpson will leave the role Sept. 30, but he will remain in a senior advisory role until February 2023.

September 17, 2022

McCain acquires vegetable-based appetizer producer

Food & Drink

McCain Foods finalized its acquisition of Scelta Products, Kruiningen, Netherlands, for an undisclosed sum on Sept. 8. A maker of frozen, vegetable-based snacks, Scelta’s product line of breaded mushrooms, onion rings, and cauliflower fries joins McCain’s growing portfolio of prepared vegetable appetizers.

September 17, 2022

Plant-Based, Pumpkin Spice, and more food words added to Merriam-Webster Dictionary

Food & Drink

Plant-based, pumpkin spice, oat milk — these are just a few of the new food-related words added to the Merriam-Webster Dictionary this year. While these words are hardly new to the vernacular (especially pumpkin spice — why did that take so long?), they are only now deemed to have the “clear and sustained evidence of use” required for dictionary inclusion.