Tyson Foods, Inc. (NYSE:TSN), the largest meat processor in the United States announced its decision to close its three plants, which will result to the elimination of 950 jobs.
According to the company, would be able to use more of the available production capacity at some of its prepared food plants by discontinuing the operations of its plants in Buffalo New York, Cherokee, Iowa and Santa Teresa, New Mexico. Tyson Foods, Inc. (NYSE:TSN) said the closures will also allow it to shift some its production and equipment to other more cost-efficient locations.
Tyson Foods, Inc. (NYSE:TSN) said it will stop the operations of its plant in Cherokee effective September 27. The company plans to close its facilities in Buffalo and Santa Teresa during the first-half of 2015.
According to the meat processor, 450 employees in Cherokee would lose their jobs while 350 and 200 workers will be affected in Buffalo and Santa Teresa, respectively.
In a statement, Donnie King, president of prepared foods, customer and consumer solutions at Tyson Foods, Inc. (NYSE:TSN) said, “This is a very difficult decision since it affects the lives of our team members and their families however these plants have been struggling financially. After long and careful consideration, we’ve concluded it no longer makes business sense to keep them open.”
Tyson Foods, Inc. (NYSE:TSN) said its decision to close its three plants was due to a combination of factors including changing product needs, the age of the Cherokee facility, and the prohibitive cost of its renovation. The company also cited the distance of its Buffalo and Santa Teresa plants from its raw material supply base in the Midwest as another factor.
Chris Hurt, an agricultural economist at Purdue University commented, “The consolidation helps them get transportation efficiencies. It clearly helps them get operational efficiencies.”
The affected workers can apply for openings within the company. Tyson Foods, Inc. (NYSE:TSN) will also host job fairs. The company will also work with state officials to ensure that the employees will be informed regarding un-employment benefits and potential re-training opportunities.