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Tyson opens new US plant, closes two others

by 5m Editor
19 January 2006, at 12:00am

US - While plans are underway at Tyson Foods to set up a bacon production plant in the US state of Iowa, two of its meat processing plants in the same state will be shut down.

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The new plant will be located in Cherokee, Iowa, with existing ham operations to be relocated. Two meat plants processing chopped ham and sliced luncheon meats in north-east Iowa will be closed in the middle of March and sold off, affecting about 400 jobs.

Tyson plans to spend US$30 million to add bacon production to its Cherokee plant, to meet increased demand for refrigerated and pre-cooked bacon. Operations at the facility are expected to begin after mid-2006 and will complement production at the company's bacon plants in four other US states. The company expects to add 70 jobs to the new plant.

Despite it being a tough decision, Tyson went ahead in choosing to close the plants as it was economically unfeasible to keep them open, explained Bill Lovette, senior group vice president of its poultry and prepared foods division. Both plants are at least 40 years old.

Annual pre-tax cost savings of US$15-20 million are expected from the closure of these two plants, along with savings from the more efficient use of other facilities.

Source: eFeedLink - 19th January 2006

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