Tyson Foods Announces Plans for Two Prepared Foods Plants
November 19 2015 - 4:00PM
As part of efforts to improve the overall performance of its
prepared foods business, Tyson Foods, Inc. (NYSE:TSN) plans to
discontinue operations at two plants, the company announced today.
The closings will enable Tyson Foods to use available production
capacity at some of its other prepared foods facilities.
Both the pepperoni plant in Jefferson, Wisconsin and the
Chicago, Illinois, facility, which makes prepared foods for the
hospitality industry, are expected to cease operations during the
second half of the company's fiscal year 2016, which ends October
1, 2016. The decision will affect approximately 880 people,
including about 480 at Chicago and about 400 at Jefferson. It's
important to note that none of Tyson Foods' other Chicago
facilities or offices are affected by this announcement.
"We examined many options before we turned down this road," said
Donnie King, president of North American operations for Tyson
Foods. "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."
The planned closures are due to a combination of factors
including changing product needs, the age of both facilities and
prohibitive cost of renovations, as well as the distance of the
Chicago plant from its raw material supply base.
Affected workers will be encouraged to apply for openings within
the company. Tyson Foods intends to work with state officials to
ensure employees are informed about unemployment benefits and any
potential re-training opportunities.
Tyson Foods bought the Chicago plant in 1994. At the time, it
was privately owned and made meals exclusively for airlines.
Tempura chicken, meatballs, crepes, omelets, soups, sauces and
Chicken Cordon Bleu are currently produced there.
The Jefferson facility, which produces sliced pepperoni and ham
for pizza toppings, as well as sliced pepperoni and salami for deli
and foodservice applications, was part of Tyson Foods' acquisition
of IBP, inc., in 2001. Founded in 1875 by the Stoppenbach Family,
as a beef, pork and lamb processing facility, it was sold in 1934
to the Bauch and Tensfeldt families. During the late 1960s and
early 1970s, the plant was converted to further processing,
concentrating on pepperoni for the pizza industry. The plant was
sold to Doskocil Foods in 1985, which later became Foodbrands
America and was acquired by IBP, inc. in 1997.
About Tyson Foods
Tyson Foods, Inc. (NYSE:TSN), with headquarters in Springdale,
Arkansas, is one of the world's largest food companies with leading
brands such as Tyson®, Jimmy Dean®, Hillshire Farm®, Sara Lee®,
Ball Park®, Wright®, Aidells® and State Fair®. It's a recognized
market leader in chicken, beef and pork as well as prepared foods,
including bacon, breakfast sausage, turkey, lunchmeat, hot dogs,
pizza crusts and toppings, tortillas and desserts. The company
supplies retail and foodservice customers throughout the United
States and approximately 130 countries. Tyson Foods was founded in
1935 by John W. Tyson, whose family has continued to lead the
business with his son, Don Tyson, guiding the company for many
years and grandson, John H. Tyson, serving as the current chairman
of the board of directors. The company currently has approximately
113,000 Team Members employed at more than 400 facilities and
offices in the United States and around the world. Through its Core
Values, Code of Conduct and Team Member Bill of Rights, Tyson Foods
strives to operate with integrity and trust and is committed to
creating value for its shareholders, customers and Team Members.
The company also strives to be faith-friendly, provide a safe work
environment and serve as stewards of the animals, land and
environment entrusted to it.
CONTACT: Media Contact:
Worth Sparkman, worth.sparkman@tyson.com or 479-290-6358
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