Tyson Foods has announced that it will shut the doors of three plants, based in Cherokee, Iowa; Buffalo, New York and Santa Teresa, New Mexico.
According to Donnie King, president, prepared foods, customer and consumer solutions for Tyson Foods, the plants have been struggling financially, which has led to closure. Some production will be transferred to other plants. The company also stated that the closures are caused by changing product needs, the age of the Cherokee facility and prohibitive cost of its renovation, and the distance of the Buffalo and Santa Teresa plants from their raw material supply base in the Midwest.
In Iowa deli meats, ham, Canadian bacon and hot dogs are produced. In New York the plants produces hot dogs, sausage and ham, in New Mexico the site produces cooked items including dinner meats, diced ham and roast beef.
The closure of the new York and New Mexico plants is expected to take place in early 2015, while the Iowa plant will close in September this year. 950 jobs will be lost due to the closures, however, the company says employees will be encouraged to apply for openings within the company and will receive invitations to Tyson-hosted job fairs.
The company announced a deal of $7.75 billion earlier this month to buy Hillshire Brands Co., the maker of Jimmy Dean sausages and Ball Park hot dogs.
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