Pilgrim’s Pride is consolidating its manufacturing operations in a move that will see it close a facility in Alabama, where 1,100 people are currently employed.
From the end of January, the US chicken processor will transfer production from its plant in Boaz to operations in Russellville, also in Alabama, and Douglas in Georgia. Current production levels will be maintained and around 100 jobs will be added at Russellville and Douglas.
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In a statement released yesterday (19 November), Pilgrim’s Pride said the factory closure was part of its drive to generate cost savings of US$200m in 2014. The company said that it expects to generate more than $20m in incremental margin by using the capacity in its network more effectively.
Pilgrim’s Pride also revealed plans to invest further in two other facilities. The group will spend $10m to upgrade its feed mill in Falkville, Alabama, and $25m to expand a deboning plant in Mt. Pleasant, Texas.
“Today’s announcement reflects the strength of our balance sheet, our willingness to strategically invest in our business and our continued commitment to the pursuit of operational excellence,” president and CEO Bill Lovette said. “Given our decision to consolidate operations, our intent is to offer retention incentives to encourage many of our Boaz team members to remain with the company in different capacities.”
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