Top US meat producer Tyson Foods to close Oklahoma plant, fire 580 employees
28 Mar 2009
No.1 American meat producer Tyson Foods Inc said on Friday it will close a lunch meat plant in Ponca City, Oklahoma, affecting about 580 people, one-half of one per cent of the company's workforce. It has about 107,000 employees globally.
Tyson said it expected to take a charge of about 2 cents a share against fiscal second-quarter earnings for the plant closing. The move is part of Tyson's efforts to cut costs in its operations. The closing process will begin in late May and will most likely not be completed until sometime in July or August.
''This decision was based on improving asset utilisation'' and will benefit Tyson's overall processed-meats operation, Dick Belsito, senior vice president of that unit, said in a statement.
Tyson said it has been trying to find a buyer for the plant, but so far has not completed a sale. Production from the plant will be moved to Tyson plants in Buffalo, New York; Cherokee, Iowa and Houston, Texas.
Profit for the prepared-foods unit was unchanged at $35 million in the fiscal first quarter as higher expenses offset a 10 per cent increase in sales. Its operating margin narrowed to 4.7 per cent from 5.2 per cent a year earlier.