Tyson Completes Sale of Commodity Poultry Operations in Alabama; Sale part of strategic effort to reduce commodity chicken production
Tyson Foods, Inc. (NYSE: TSN) has completed the sale of two of its Alabama poultry plants and related support facilities, the company reported today.
As part of strategic efforts to reduce the production of commodity chicken, Tyson has sold its processing plants in Ashland and Gadsden to Koch Foods Incorporated of Park Ridge, Illinois. The sale also includes the company’s Talladega feed mill, as well as its Fairknoll and Empire hatcheries. Terms of the transaction were not released.
“We determined it made sense to sell these commodity operations since our company has become more focused on value-added chicken production, which typically involves producing boneless, marinated or cooked products,” said Bill Lovette, Tyson senior group vice president of Poultry and Prepared Foods. “Our sincere thanks to the Team Members and communities associated with the operations involved in the sale. We appreciate their support over the years and hope these facilities continue to operate successfully.”
The Gadsden and Ashland poultry complexes had been part of Tyson Foods for more than 20 years.
More than 800 of the 1,200 Tyson Team Members employed at the Tyson locations involved in the sale have been hired by Koch Foods. This includes more than 320 Team Members from the Gadsden plant, which will continue to process birds but will no longer have further processing operations. This change has resulted in the elimination of approximately 350 positions at Gadsden. Some Tyson chicken catching positions in the region were also displaced. The affected Team Members have been offered financial incentives to transfer to other Tyson operations in Alabama and approximately 90 have currently accepted.
Tyson continues to have a presence in Alabama. The company employs approximately 2,400 Team Members at company facilities in Albertville, Blountsville, Cullman and Ivalee.
Tyson Foods, Inc. [NYSE: TSN], founded in 1935 with headquarters in Springdale, Arkansas, is the world’s largest processor and marketer of chicken, beef, and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products, which are marketed under the “Powered by Tyson®” 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. The company has approximately 107,000 Team Members employed at more than 300 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
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