Springdale, Ark. – November 19, 2015 – As part of efforts to improve the overall performance of its prepared foods business, Tyson Foods, Inc. (NYSE: TSN) plans to discontinue operations at two plants, the company announced today. The closings will enable Tyson Foods to use available production capacity at some of its other prepared foods facilities.
Both the pepperoni plant in Jefferson, Wisconsin and the Chicago, Illinois, facility, which makes prepared foods for the hospitality industry, are expected to cease operations during the second half of the company’s fiscal year 2016, which ends October 1, 2016. The decision will affect approximately 880 people, including about 480 at Chicago and about 400 at Jefferson. It’s important to note that none of Tyson Foods’ other Chicago facilities or offices are affected by this announcement.
“We examined many options before we turned down this road,” said Donnie King, president of North American operations for Tyson Foods. “This affects the lives of our team members and their families, making it a very difficult decision. But after long and careful consideration, we’ve determined we can better serve our customers by shifting production and equipment to more modern and efficient locations.”
The planned closures are due to a combination of factors including changing product needs, the age of both facilities and prohibitive cost of renovations, as well as the distance of the Chicago plant from its raw material supply base.
Affected workers will be encouraged to apply for openings within the company. Tyson Foods intends to work with state officials to ensure employees are informed about unemployment benefits and any potential re-training opportunities.
Tyson Foods bought the Chicago plant in 1994. At the time, it was privately owned and made meals exclusively for airlines. Tempura chicken, meatballs, crepes, omelets, soups, sauces and Chicken Cordon Bleu are currently produced there.
The Jefferson facility, which produces sliced pepperoni and ham for pizza toppings, as well as sliced pepperoni and salami for deli and foodservice applications, was part of Tyson Foods’ acquisition of IBP, inc., in 2001. Founded in 1875 by the Stoppenbach Family, as a beef, pork and lamb processing facility, it was sold in 1934 to the Bauch and Tensfeldt families. During the late 1960s and early 1970s, the plant was converted to further processing, concentrating on pepperoni for the pizza industry. The plant was sold to Doskocil Foods in 1985, which later became Foodbrands America and was acquired by IBP, inc. in 1997.
About Tyson Foods
Tyson Foods, Inc. (NYSE: TSN), with headquarters in Springdale, Arkansas, is one of the world's largest food companies with leading brands such as Tyson®, Jimmy Dean®, Hillshire Farm®, Sara Lee®, Ball Park®, Wright®, Aidells® and State Fair®. It’s a recognized market leader in chicken, beef and pork as well as prepared foods, including bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, tortillas and desserts. The company supplies retail and foodservice customers throughout the United States and approximately 130 countries. Tyson Foods was founded in 1935 by John W. Tyson, whose family has continued to lead the business with his son, Don Tyson, guiding the company for many years and grandson, John H. Tyson, serving as the current chairman of the board of directors. The company currently has approximately 113,000 Team Members employed at more than 400 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson Foods strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
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