JOSLIN, Ill., Jan. 10, 2007 (PRIME NEWSWIRE) -- A nine-year-old lawsuit filed by the state of Illinois against IBP, Inc. has been resolved. The two sides finalized a settlement today after reaching an agreement in principle in July 2006 to end the case, which involved the company's Joslin beef complex.
As part of the final agreement, IBP -- which was acquired by Tyson Foods, Inc. (NYSE:TSN) in 2001 -- will fund six environmentally beneficial projects with a combined value of $995,000, including three projects in the Quad Cities. The company will also install additional odor-reducing technology at the plant and pay a $30,000 civil penalty.
"We're pleased this long-running legal matter is over and are moving forward with the implementation of additional environmental improvements at the plant," said Kevin Igli, senior vice president and chief environmental, health and safety officer for Tyson. "Environmental stewardship is one of our core values and we strive to manage all of our plants responsibly, emphasizing pollution prevention, conservation and operational efficiency."
IBP took steps to reduce odor from the Joslin plant prior to the settlement. The company spent millions of dollars covering existing wastewater treatment lagoons, completing the project in 2001. Two wastewater basins were also subsequently covered. In addition, a manure storage area was relocated offsite and a new air scrubbing system was installed to reduce odor from the plant's by-product rendering operation.
Company officials, working with the state, suggested funding environmentally beneficial projects as part of the agreement to end the case. As a result, $100,000 has been designated for environmental projects for the Rock Island County Schools, $50,000 for construction of the Quad City Botanical Center Children's Garden in Rock Island and $45,000 for environmental remediation work at the Bass Street Landing Brownfield Site in Moline.
In addition, $600,000 in environmental funding has been earmarked for installation of idling reduction technology on Tyson-leased heavy vehicles, while $100,000 will be given to both the Illinois EPA Special State Projects Trust Fund and Attorney General State Projects and Court Ordered Distribution Fund. All these projects were undertaken in connection with the settlement of the enforcement action by the state of Illinois for alleged violations of the Illinois Environmental Protection Act and regulations promulgated thereunder.
The Joslin beef plant employs 2,400 people and generates an annual payroll of $72 million. The plant produces fresh cuts of commodity boxed beef for sale to retail, wholesale and foodservice customers in the U.S. and internationally.