US: Meat group Smithfield to close Maryland plant
By Dean Best | 15 March 2013
US meat processor Smithfield Foods is to close a site in Maryland.
Smithfield said it would shift bone-in ham production from its plant in Landover to sites in North Carolina and Kentucky. The Landover factory will close this autumn. Around 175 staff will be affected.
"We deeply regret having to close this facility because we recognize that layoffs and plant closings are difficult for everyone concerned," Tim Schellpeper, president of the company's Smithfield Packing unit, said. "However, the Landover plant is a facility that no longer meets our ever-changing production needs. We will work diligently to transfer as many employees as possible to our other operations."
Last week, Smithfield faced criticism of its recent performance from a major investor, which called on the company's board to consider splitting the company in three.
Agribusiness Continental Grain, which owns around 6% of Smithfield, has claimed dividing the company would "unlock significant value" for shareholders.
Continental Grain said Smithfield could be split into a hog processor, a company supplying fresh pork and packaged meats and a business focused on its operations outside the US.
Smithfield Packing to Consolidate Bone-in Ham Production and Close Landover, Maryland, Plant by Early Fall
LANDOVER, Md., March 14, 2013 (GLOBE NEWSWIRE) -- The Smithfield Packing Company, Inc., a subsidiary of Smithfield Foods, Inc. (NYSE:SFD), announced today that it plans to shift bone-in ham production from its Landover, Maryland, plant to its facilities in North Carolina and Kentucky, and then permanently close the Landover plant by early fall.
Closing the Landover plant will affect about 175 hourly and salaried employees. Some employees will be offered transfers to other Smithfield Packing facilities, and the company also will negotiate with United Food and Commercial Workers (UFCW) union officials regarding other potential opportunities related to this transition.
"We deeply regret having to close this facility because we recognize that layoffs and plant closings are difficult for everyone concerned," said Tim Schellpeper, president of Smithfield Packing.
"However, the Landover plant is a facility that no longer meets our ever-changing production needs. We will work diligently to transfer as many employees as possible to our other operations," Schellpeper said.
The company will comply with the federal Worker Adjustment and Retraining Notification Act (WARN), and will provide employees with a 60-day notification of the plant closure. Under the WARN Act, the company also will notify state dislocated worker units so that they can promptly offer dislocated worker assistance.
Original source: Smithfield Foods
Sectors: Meat & poultry
Companies: Smithfield Foods
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