In response to strong consumer demand for chicken, Tyson Foods,
Inc. (NYSE:TSN) today announced plans to build a $320 million
poultry complex in eastern Kansas.
The company will construct a processing plant, hatchery and feed
mill near the city of Tonganoxie, in Leavenworth County, which will
employ approximately 1,600 people and contract with northeast
Kansas farmers and ranchers to raise chickens. The operation,
currently scheduled to begin production in mid-2019, will produce
pre-packaged trays of fresh chicken for retail grocery stores
nationwide.
“More people want fresh food and as one of the world’s leading
protein companies, we’re well-positioned to provide it,” said Tom
Hayes, president and CEO of Tyson Foods. “We believe this new
operation, which will incorporate the latest production technology,
will enable us to meet the sustained growth in consumer demand for
fresh chicken.”
The poultry plant will be capable of processing 1.25 million
birds per week, increasing Tyson Foods’ overall production
capacity. The payroll and payments to farmers from the new
operation, along with its purchase of grain and utilities, is
expected to generate an annual economic benefit to the state of
Kansas of $150 million.
“Kansas will be an outstanding home for this Tyson complex,”
said Governor Sam Brownback. “Growing Kansas means we must grow the
food and agriculture sector which accounts for nearly 45 percent of
the state’s economy. The far-reaching impact of this development
will be felt by farmers, ranchers, agribusinesses and communities
throughout eastern Kansas. This is a step in the right direction to
further diversify and grow our state’s economy.”
The Governor emphasized the importance of local-level support
for economic development. “Kansas is known throughout the world for
our commitment to animal agriculture and for our communities which
offer an exceptional place for companies of this quality to find a
talented workforce in a business-friendly environment.”
“Tonganoxie is looking forward to a successful partnership with
Tyson Foods,” said Tonganoxie Mayor Jason Ward. “We have planned
for a development of this type for many years by making strategic
investments in public infrastructure targeted to support future
industrial growth. This project will bring much anticipated
opportunities for local residents to enjoy the quality of life
benefit of working close to home. Tyson has a long history of
support for small towns and local markets. They will be a great fit
for our community.”
“The Leavenworth County Board of Commissioners is excited that
Tyson Foods will be opening a state-of-the-art poultry processing
facility in southern Leavenworth County,” said Mark Loughry,
Leavenworth County administrator. “This represents a significant
investment by Tyson and creates new jobs at the plant for our
citizens. More than that it provides an opportunity for area ag
producers that was previously unheard of in Kansas.”
“We believe eastern Kansas is the right location because of the
availability of grain and labor, as well as access to our
nationwide customer base that is accessible through the state’s
top-notch transportation network,” said Doug Ramsey, group
president of Poultry for Tyson Foods. “We’re grateful for the
tremendous support we’ve received for this project from Governor
Brownback, as well as leaders from the City of Tonganoxie,
Leavenworth County, the Leavenworth County Development Corporation,
and a host of other city, county and state officials.”
Tyson Foods anticipates purchasing about 300 acres of property
south of Tonganoxie and currently plans to break ground sometime
this fall. The company will work with outside contractors to build
the plant, hatchery, feed mill and related infrastructure and
expects the construction project to involve hundreds of workers.
Farmers and ranchers who have interest in raising chickens for the
new poultry complex are encouraged to go to www.growwithtyson.com
for more information.
Earlier this year, Tyson Foods announced it was moving to No
Antibiotics Ever (NAE) in its Tyson® branded retail chicken
products, making it the world’s largest producer of NAE. The
Tonganoxie plant will be part of the continued expansion of the
company’s NAE offerings.
Tyson Foods currently operates facilities in six Kansas
communities, employing about 5,700 in the state with an annual
payroll of more than $210 million. In its 2016 fiscal year, Tyson
Foods paid Kansas cattle suppliers more than $2 billion and hog
suppliers more than $1.3 million. The company estimates its total
statewide annual impact for fiscal 2016, including grain purchases,
utilities, property taxes and charitable contributions to be more
than $2.4 billion.
About Tyson Foods, Inc.Tyson Foods Inc.
(NYSE:TSN) is one of the world’s largest food companies and a
recognized leader in protein. Founded in 1935 by John W. Tyson and
grown under three generations of family leadership, the company has
a broad portfolio of products and brands like Tyson®, Jimmy Dean®,
Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State
Fair®. Tyson Foods innovates continually to make protein more
sustainable, tailor food for everywhere it’s available and raise
the world’s expectations for how much good food can do.
Headquartered in Springdale, Arkansas, the company has 114,000 team
members. Through its Core Values, Tyson Foods strives to operate
with integrity, create value for its shareholders, customers,
communities and team members and serve as stewards of the animals,
land and environment entrusted to it. Visit www.tysonfoods.com.
Forward-looking StatementsCertain information
contained in the press release may constitute forward-looking
statements, including but not limited to statements relating to
expected (i) consumer demand for certain products that we produce,
(ii) construction expense and production timeframes and capacities,
and (iii) labor and grain availabilities. These forward-looking
statements are subject to a number of factors and uncertainties
which could cause our actual results and experiences to differ
materially from the anticipated results and expectations expressed
in such forward-looking statements. We wish to caution readers not
to place undue reliance on any forward-looking statements, which
speak only as of the date made. Among the factors that may cause
actual results and experiences to differ from anticipated results
and expectations expressed in such forward-looking statements those
factors listed under Item 1A. “Risk Factors” included in our Annual
Report filed on Form 10-K for the period ended October 1, 2016 and
subsequently filed Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K.
Contact: Worth Sparkman, 479-290-6358, worth.sparkman@tyson.com
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