ConAgra to shut down Slim Jim plant

ConAgra Foods will close its damaged Slim Jim plant in Garner, N.C., and transfer production of the meat snacks to a facility in Troy, Ohio.

The move will result in the termination of 500 jobs in Garner and the addition of 200 jobs in Troy, the company said in a filing with the US Securities and Exchange Commission.

ConAgra's Garner plant has been operating with limited production capability since June 2009, when an explosion at the plant killed four people and injured dozens.

The Troy plant, which has produced a portion of ConAgra's meat snacks products since the accident, will become its primary Slim Jim production facility. The transfer of production to Troy is expected to take 15-18 months to complete, the company said.

ConAgra expects to incur pre-tax charges of US$52 million-US$72 million mostly in fiscal 2010 and 2011 and capital expenditures of US$60 million-US$70 million to implement the plan. The company said it has been unable to determine whether equipment with a book value of about US$12 million was destroyed in the accident because it cannot yet access part of the damaged facility.

The estimates do not include insurance proceeds expected to be received in connection with the Garner accident. The charges and expenses will not affect the company's current earnings forecasts, ConAgra said.