Dive Brief:
- Tyson Foods is closing a Hillshire Brands plant in Rome, Georgia, and laying off 168 workers after “recent changes have made continued operations at the site no longer viable,” according to a statement.
- The facility will cease operations May 31, according to a WARN notice filed with the state. Tyson is encouraging affected workers to apply for other positions in the company.
- The plant manufactured Nature Valley Granola bars for General Mills on a contract basis, according to local news reports. Tyson added in a statement the facility has “operated under a unique single-customer model,” but did not provide more specifics.
Dive Insight:
The closure comes as Tyson consolidates its manufacturing network to focus on production efficiency and cost savings. The meatpacker closed its largest beef plant in Lexington, Nebraska, in January to “right size” its business as a severe cattle shortage raises processors’ costs and creates a surplus of manufacturing capacity.
The Rome plant was included in Tyson’s $8.5 billion acquisition of Hillshire Brands in 2014, and local news reports say the facility had a long history manufacturing baked goods under other major food producers, including Sara Lee. The facility transitioned to granola bar production in the early 2000s, the Coosa Valley News said.
The closure allows Tyson to focus more on meat and other aspects of its prepared foods segment, which includes its foodservice operations and the Jimmy Dean and Hillshire Farm brands. Tyson’s prepared foods segment sales has remained a bright spot for the company, increasing 8% in the first quarter compared to the previous year and adding an additional $16 million in operating income.
