Austin, Minnesota-based Hormel Foods Corp, a manufacturer and marketer of branded, value-added meat products, has announced that it has plans to transform its Rochelle, Ill., plant from a hog slaughter operation to a value-added product processing facility producing cured and smoked meats.
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“Branded, value-added products accounted for 78% of our total sales mix in FY 2001, and one of our growth strategies is to expand our value-added product offering further because they serve consumers’ busy lifestyles,” said Joel W. Johnson, president and CEO. “The transition at the Rochelle, Ill., plant will allow us to expand capacity to meet growing demand for value-added products while maximising operating efficiencies.”
The company plans to conclude slaughter activities at the plant on 8 November, and begin the renovation immediately. Through normal attrition and increased processing operations the company plans to minimise the impact to the workforce.
The company explained in a press release that the size and design of the Rochelle slaughter department make it cost-prohibitive to operate in a competitive environment.
This decision, added Hormel, will result in the discontinuance of relationships with many hog producers who have been loyal suppliers to the Rochelle facility. Both contract and open market hog purchases are affected.
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By GlobalData
