US meat group Tyson Foods is to spend US$48m on the renovation of one of its plants in Iowa.
The revamp will take place at its Council Bluffs facility, which as a result, will temporarily close until next spring.
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The investment will be spent on converting the cooked meats facility into a dry sausage and pepperoni operation. The move will involve the installation of equipment and product flows, as well as the addition of 60,000 sq ft of space.
As a result of the conversion, around 135 of the 170 staff will be put on temporary layoff, and will be “called back, on a seniority basis, for open jobs” when the plant re-opens.
The renovation, Tyson said, is part of its effort to meet demand in the areas of pepperoni and pizza toppings. The plant will become Tyson’s fifth dry sausage and pepperoni operation. The company currently has one pepperoni plant in Kansas, one in Wisconsin and two in Texas.
“This is a major investment we believe will help us maintain our position as a leader in pepperoni production,” said Tyson SVP and general manager of prepared foods Boyd Bulger. “Council Bluffs is the right location for this project, because of the existing facility and excellent workforce, its proximity to raw material supplies and the access to interstate highways.”
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By GlobalDataDue to the temporary closure of the plant, Tyson said it will begin scaling back production at the facility from late September, with full closure expected by October.
