SHERMAN, Texas, Jan. 31 /PRNewswire-FirstCall/ -- Tyson Foods (NYSE: TSN)
will open a major case ready meat plant in Sherman, Texas, employing as many
as 1,600 people, Texas Governor Rick Perry and Tyson Chairman and CEO John
Tyson announced today.
Tyson will spend approximately $100 million to renovate the former Oscar
Mayer plant in Sherman. Initial operations are expected to begin in early
2006. The plant will be transformed into Tyson's largest case ready
operation, producing pre-packaged cuts of fresh beef and pork that are ready
for retail grocers to place directly into the meat case.
"Tyson's decision to open this facility is great news, not just to
Sherman, but to the entire state," said Gov. Rick Perry. "We welcome Tyson
Foods to the growing number of companies that recognize Texas does, indeed,
have the best business climate in the nation and are expanding and moving
here. The 1,600 new jobs that will be created and Tyson's $100 million
capital investment will invigorate the economy of the area and mean greater
opportunity for Texans."
"We're excited about proceeding with this project, which represents
another monumental step in the evolution of our case ready meats business,"
John Tyson, chairman and CEO of Tyson Foods, said. The company also has case
ready meat operations in Amarillo, Texas; Goodlettsville, Tennessee; and
Council Bluffs, Iowa.
"We extend our thanks to Sherman community leaders and the State of Texas
for their tremendous support in efforts to renovate the plant and bring new
jobs to this region," Tyson said. "The strong business climate put Texas in
the running for this new operation and the Governor's Enterprise Fund closed
the deal."
"We are delighted that Tyson has chosen Sherman for its newest plant and
welcome them to our community," said Mayor Julie Ellis Starr. "We know that
this facility will have a tremendous positive impact on Sherman and the entire
Texoma region."
The 537,000 square foot plant was first opened by Oscar Mayer in 1974 and
was used to produce bacon, hot dogs and sausage. Oscar Mayer closed the plant
in 1998. The facility was purchased in 2000 by IBP, inc., a company that was
subsequently acquired in 2001 by Tyson Foods and is now known as Tyson Fresh
Meats.
Renovations will begin immediately. Work will include improvements in the
refrigeration system and the installation of new processing and packaging
equipment. The renovation project is expected to provide employment for 300
to 500 construction workers. Tyson engineering department, which will direct
renovation efforts, will meet with local contractors in the near future to
discuss opportunities to work on the project.
Company officials plan to begin one shift of production in early 2006 and
add another shift in early 2007. The growth of operations is expected to
create up to 1,600 jobs over a two to three year period. Most of the jobs
will involve cutting, trimming and packaging product. Others will include box
handling and storage, maintenance, quality assurance and production
management.
Wages and benefits for people hired to work at the plant have not been
finalized. The company doesn't expect to begin hiring for hourly production
and maintenance positions until a couple of months before the start of
operations.
Tyson Fresh Meats has been actively involved in the development of case
ready meats since the 1990s. The company began producing small quantities of
pre-packaged beef and pork cuts at Council Bluffs on a test market basis in
early 1999. The primary driving forces behind the growth of case-ready meats
include enhanced product safety, quality and efficiency.
"Thanks to extensive research and development, we have the packaging and
processing technology to bring uniformly trimmed, tender cuts of beef and pork
in case ready form to the consumer," according to Gene Leman, senior group
vice president of Tyson Fresh Meats. Tyson provides retailers with a full,
meat case replacement program for beef and pork, comprising of more than
100 beef and 40 pork cuts.
Portions of beef and pork will be brought to Sherman from other Tyson beef
and pork packing facilities for processing and packaging. The pork products
will be marketed under the Tyson brand name, while the beef products will be
sold in unbranded packaging. The plant, which will have the capacity to
handle more than six million pounds of product per week, will serve retail
grocery outlets in Texas and nearby states.
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale,
Arkansas, is the world's largest processor and marketer of chicken, beef, and
pork and the second-largest food company in the Fortune 500. The company
produces a wide variety of protein-based and prepared food products, which are
marketed under the "Powered by Tyson(TM)" strategy. Tyson is the recognized
market leader in the retail and foodservice markets it serves, providing
products and service to customers throughout the United States and more than
80 countries. Tyson has approximately 114,000 Team Members employed at more
than 300 facilities and offices in the United States and around the world.
Forward-Looking Statements
Certain statements contained in this communication are "forward-looking
statements" such as statements relating to the anticipated time frames for the
opening of the new case-ready facility, the addition of a second shift of
production, the amounts estimated to renovate the facility, the production
capacities of the facility, the number of jobs to be created, the markets the
facility will service and the growth and marketing of case ready products.
These forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from historical
experience or from future results expressed or implied by such forward-looking
statements. Among the factors that may cause actual results to differ
materially from those expressed in, or implied by, the statements are the
following: (i) fluctuations in the cost and availability of raw materials,
such as live cattle, live swine or feed grains; (ii) market conditions for
finished products, including the supply and pricing of alternative proteins,
and the demand for alternative proteins; (iii) risks associated with
effectively evaluating derivatives and hedging activities; (iv) access to
foreign markets together with foreign economic conditions, including currency
fluctuations and import/export restrictions; (v) successful rationalization of
existing facilities, and the operating efficiencies of the facilities; (vi)
changes in the availability and relative costs of labor and contract growers;
(vii) issues related to food safety, including costs resulting from product
recalls, regulatory compliance and any related claims or litigation; (viii)
adverse results from litigation; (ix) risks associated with leverage,
including cost increases due to rising interest rates or changes in debt
ratings or outlook; (x) changes in regulations and laws (both domestic and
foreign), including changes in accounting standards, environmental laws and
occupational, health and safety laws; (xi) the ability of the Company to make
effective acquisitions, and successfully integrate newly acquired businesses
into existing operations; (xii) effectiveness of advertising and marketing
programs; and (xiii) the effect of, or changes in, general economic
conditions. The Company wishes to caution readers not to place undue reliance
on any forward-looking statements, which speak only as of the date made.
Tyson undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events or
otherwise.
SOURCE Tyson Foods, Inc.
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Related links:
http://www.tyson.com
CONTACT:
media, Gary Mickelson, +1-479-290-6111, or
investors, Louis Gottsponer, +1-479-390-4826, both of Tyson
Foods, Inc.
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