Smithfield Foods is to close a hog and fresh meat plant in Iowa, which could lead to the loss of around 1,450 jobs at the US meat giant.
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The company said today (20 January) that the facility processes hogs produces boneless loins and other fresh pork products would close in April.
“We deeply regret having to close this facility,” said Joseph Sebring, president of Smithfield subsidiary John Morrell. “We recognise that layoffs and plant closings are difficult for everyone concerned.”
However, Sebring insisted the closure was a “necessary business decision”. He said: “The Sioux City plant is one of the oldest, most outdated and least efficient plants in the Smithfield system.
“The Sioux City plant was constructed in 1959 and would require significant capital expenditures to outfit it with the next generation of pork processing technology. In this adverse business environment those capital needs simply cannot be met.”
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By GlobalDataSmithfield plans to use three other facilities to “partially absorb” the production at the facility.
