The nation’s leading producer of beef and pork continues its expansion into the production of case-ready meat products. IBP, inc. (NYSE: IBP – news) today announced that it has chosen Sherman, Texas, as the site for a new case-ready meats operation that will employ up to 1,400 people.
IBP expects to spend $40 to $60 million to renovate the former Oscar Mayer plant in Sherman, which closed in 1998. The 600,000 square foot facility, first opened in 1974, was formerly used to produce bacon, hot dogs and sausage.
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Once remodeled, the Sherman plant will produce packaged cuts of fresh beef and pork that are ready for retail grocers to place directly into the meat case. The operation will eventually produce several million pounds of fresh meat each week. Product from the plant will be sold to retail grocers, primarily in the southern U.S., under the company’s new Thomas E. Wilson(TM) brand name.
The new operation will create 1,000 to 1,400 jobs over a two to three year period. Wages and benefits have not been finalized, however, they will be competitive with the pay and coverage provided for comparable positions in the local job market.
Portions of beef and pork will be brought to Sherman from other IBP plants for additional processing into individual cuts such as roasts, steaks and chops. Most of the jobs at the plant will involve cutting, trimming and packaging product. Other positions will include box handling and storage, maintenance, quality assurance and production management.
Renovations at the plant will begin this summer. They will include removal of walls, improvements in flooring and refrigeration, and the installation of new processing and packaging equipment. Company officials plan to begin one shift of production at Sherman in the spring of 2001 and add another shift in late 2001 or early 2002.
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By GlobalData“This will be a very clean, bright food processing operation,” according to James Lochner, president and chief operating officer of the IBP Fresh Meats Company. “Our commitment in Sherman represents another major step by IBP into the production of case-ready, brand name products.” The only other IBP plant currently producing Thomas E. Wilson case-ready meats is in Council Bluffs, Iowa.
“We very much appreciate the substantial investment IBP is making in Sherman,” Eric J. Davis, president of the Sherman Economic Development Corporation. “IBP is one of the premier companies in the meat industry. We look forward to the benefits the presence of this company will bring our community.”
IBP has been actively involved in the development of case-ready meat products over the past two years. The company began by producing small quantities of pre-packaged beef and pork cuts at Council Bluffs on a test market basis in early 1999. The primary driving forces behind the growth of case-ready meats include enhanced product safety, quality and efficiency.
“After extensive research and development, the packaging and processing technology is now available to bring uniformly trimmed, tender cuts of beef and pork in case-ready form to the consumer,” Lochner said. Thomas E. Wilson case-ready beef and pork is a full, meat case replacement program for beef and pork, comprising of more than 90 beef and 40 pork cuts.
IBP is the world’s largest producer of high quality, fresh beef and pork, and supplies premium, fully prepared meats and other consumer-ready foods for the retail and foodservice industries. The Dakota Dunes, South Dakota, company employs more than 49,000 people.
