March 2, 2012

 

Tyson beef plant expansion may shut down another

 

 

As Tyson Foods unit Tyson Fresh Meats expands its operations in Dakota City, Iowa, the company might close its beef plant in Denison, Iowa as its services are no longer required.

 

The Dakota City improvement project will result in about 200 new jobs there, as cattle harvest will increase at the facility. However, 400 jobs could be lost as the Denison plant "may close sometime in 2013," because it would no longer be needed to supplement the supply of beef carcasses in Dakota City.

 

Most of the cattle handled by the Denison plant are bought from independent cattle operations that are actually located closer to Dakota City, according to the company.
 

"It's difficult to consider the possibility of closing our Denison plant, given the impact on our people, the plant's long history in the meat industry and the tremendous support we've received from the community over the years," said Noel White, senior group vice president of Tyson Fresh Meats.

 

"However, unless area cattle supplies increase significantly or we find an alternative use for the facility, it may make economic sense to discontinue operations there next year."

 

The Denison plant has been operating since 1961.

 

The Dakota City project, already underway, includes building a new beef slaughter floor that will incorporate the latest sanitation and production systems. Completion is scheduled for mid-2013.

 

The multi-million dollar project at Dakota City will upgrade or replace parts of the plant that were originally built almost 50 years ago. The improvements will include state-of-the-art processes and technology designed to benefit animal handling, food safety, meat quality and workplace safety.

 

The company is also making improvements to the Dakota City plant's beef carcass cooler, rendering and box handling operations, as well as employee lockers and cafeteria. Changes in the plant's box handling system will involve installing additional conveyors and other equipment that will enable the facility to more efficiently handle the product mix.

 

The new beef slaughter area will incorporate ergonomic equipment and process designs that should help make certain jobs less physically demanding.

 

Dakota City is Tyson's largest beef processing complex, employing about 4,000 people and generating an annual payroll of more than US$140 million. The company spent more than US$1.7 billion in fiscal 2011 to buy cattle to supply the plant.

 

The facility produces fresh vacuum-packed, boxed beef for sale to wholesalers, retailers, hotels, restaurants and institutions. Bone, fat, trimmings and hides are recovered and used in the making of various foods, pharmaceuticals, cosmetics and clothing.