The plant in Manchester, which currently employs around 550 people, has been in use for some time. The company claims that the amount of capital required to bring this facility to a competitive level and to maintain appropriate food safety standards would be better spent to accommodate production in newer, more modern facilities. The majority of the facility's production, which is primarily sandwich meat for foodservice customers, will be moved to facilities elsewhere.
The majority of the production of the Augusta plant will be consolidated into the company's facilities in Buffalo, New York, and Concordia, Missouri. The Augusta facility, which employs approximately 170, produces hot dogs, sausages, boneless hams and deli turkey products.
"While it is never easy to make business decisions like these that affect the lives of our team members and the communities in which we operate, these steps are necessary for us to meet our responsibilities to all of our stakeholders," said group vice president of consumer products John Lea.
A major renovation is also planned for the Tyson Fresh Meats plant in Dakota City, Nebraska. The multi-million dollar project involves construction of a new beef processing addition and other improvements that the company says will strengthen the plant's long-term viability. The company admits that some processing jobs will no longer be needed once the new processing facility is operational in 2005.
"We believe consolidating our existing processing operations into one new facility will improve product flow and our ability to produce more value-added products," said Gene Leman, senior group vice president of Tyson Fresh Meats. "This project is significant because it means the plant will continue to be a vital part of the local economy for many years to come."
A new 84,500 square foot, two-story addition will be constructed on the east side of the Dakota City plant to house the new processing operation as well as a cooler, shipping docks and a box shop. Ergonomically designed work stations will be installed as part of the project to enhance worker safety and health.
"The upcoming renovation of the Tyson Fresh Meats plant in Dakota City is a positive indicator of the company's commitment to this facility," said Stu Miller, deputy director of the Nebraska Department of Economic Development. "This plant is not only a major employer, but a very important part of the economic base of northeast Nebraska and will have a significant impact on future economic stability in that part of the state." Work on the improvement project is expected to begin in early 2004 with completion scheduled for fall 2005. Oversight of the project will be provided by Tyson Engineering. It will hire area contractors where possible, who will use up to 200 construction workers to complete the project.
The Dakota City plant is involved in carcass beef production and beef processing, as well as hide processing and tanning. Fresh vacuum-packed boxed beef - such as beef loins, ribs, rounds and ground beef - are sold to wholesalers, retailers, hotels, restaurant and institutions. Bone, fat and trimmings are recovered and used in the making of various foods, pharmaceuticals, cosmetics and clothing.
More than 4,000 team members are employed at the Dakota City complex, generating an annual payroll of $110 million. The company says that it spends more than $1 billion a year buying cattle to supply the plant.
Tyson Foods is the world's largest processor and marketer of chicken, beef and pork and the second largest food company in the Fortune 500. The group produces a wide variety of brand name protein-based and prepared food products marketed in the United States and more than 80 countries around the world.