Tyson to close two production plants

Tyson to close two production plants

Tyson Foods has detailed plans to close two US plants in a move that will result in the loss of around 880 jobs. 

The US meat products group said it will close a pepperoni Plant in Jefferson in Wisconsin, where 400 people are employed. The group also intends to cease operations at a prepared foods plant in Chicago in Illinois. This facility employs approximately 480 people. Both sites are expected to close in the second half of the company's 2016 financial year, which ends next October. 

Tyson said the closures will enable it to use its prepared foods manufacturing network more effectively, optimising capacity at some of its other prepared foods facilities. The closures are the result of a "combination of factors" including changing anging product needs, the age of both facilities, prohibitive cost of renovations, as well as the distance of the Chicago plant from its raw material supply base, Tyson said. 

"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," said Donnie King, president of North American operations for Tyson. 

Tyson said it intends to work with state officials to ensure employees are informed about unemployment benefits and any potential re-training opportunities.