Tyson to close two beef plants, move work to renovated facility

SPRINGDALE, Ark. (AP)--Tyson Foods Inc., said Feb. 15 that it would close two Nebraska beef facilities with 1,665 workers and move the work to a plant being renovated in that state.

Tyson said it will close its beef processing plant in Norfolk and beef slaughter plant in West Point, both in northeastern Nebraska.

The company said the efficiencies at its Dakota City plant and other factors will help Tyson save $40 million, some of which will be in the latter portion of the current fiscal year.

The company said 1,300 workers at Norfolk would lose their jobs Feb. 15, the last day of production there. At Norfolk, production was to end Feb. 17, putting 365 people out of work. A warehouse at the plant will operate for another month.

Tyson said it will pay workers at both plants and will provide benefits for 60 days. The company said it will try to retain some of the workers by having them move to Dakota City or Lexington, Neb., or Emporia, Kan.

"We regret the disruption the closings will cause our team members and these two outstanding plant communities, which both have a long history in the meatpacking industry," Tyson chairman and chief executive John Tyson said. "We've worked hard over the past year to try to keep these plants open and I appreciate everyone's efforts. However, we've concluded we can operate more efficiently by permanently consolidating operations."

Tyson's second-quarter earnings will reflect a charge of $46 million, 8 cents per share, the company said. The sum includes a non-cash charge of $36 million. Tyson says it now forecasts its fiscal 2006 earnings to be between 42 cents per share and 72 cents per share.

Date: 2/23/06