SPRINGDALE, Ark., Feb. 29, 2008 (PRIME NEWSWIRE) -- Growing consumer demand for ready-to-eat foods continues to result in the development of new, innovative products from Tyson Foods, Inc. (NYSE:TSN). It is also resulting in the discontinuation of an existing product line and the closing of one of the three plants Tyson operates in Wilkesboro, North Carolina.
An increasing number of shoppers are opting for takeout food from the retail grocery deli. In fact, 83% of consumers' main meals include ready-to-eat foods. Tyson is meeting the needs of this category with new products such as rotisserie pork loin, as well as Tyson(r) Gourmet Wraps.
Tyson also supports the production of hot, rotisserie chicken in retail delis. However, the increased popularity of this product has also contributed to reduced demand for Tyson's long-standing line of refrigerated, oven roasted chicken. After a thorough business review, the company has decided to exit production of the oven roasted line, which is produced at one of Tyson's facilities in Wilkesboro.
"Our oven roasted chicken has been a successful Tyson product for almost 20 years," said Donnie Smith, group vice president of Consumer Products for Tyson Foods. "Despite exhaustive efforts to continue this success, we've made the difficult decision to stop production and devote our resources to other products designed to help us stay ahead of where today's consumer is going."
Because of this decision, the Wilkesboro Cooked Products Plant is currently scheduled to suspend operations on or before April 1. This will result in the elimination of just over 400 jobs. No decision has been made about future use of the plant.
"The Team Members who work at the Cooked Products Plant have done a great job producing a wonderful product," said Smith. "Unfortunately, the market for this product has changed. We're taking measures to help our Team Members through the closing process."
Affected workers will continue to be paid and receive benefits for the next 60 days. They will be given the opportunity to apply for job openings in Tyson's two other Wilkesboro plants, as well as other Tyson locations. The company will also offer assistance in seeking other employment opportunities in the region.
Tyson's other Wilkesboro plants will continue operating. They include a Fresh Plant, which produces fresh chicken for retail grocery, club stores and fast food chains, and a Food Service Plant, which produces fully cooked, fresh and individually frozen chicken for schools and institutions.
The Wilkesboro complex is Tyson's largest poultry operation and is the largest employer in Wilkes County, with more than 3,000 Team Members. Tyson has been part of Wilkesboro since July 1989, when the company purchased Holly Farms.
Tyson's other North Carolina operations include a poultry processing complex in Monroe and a prepared foods plant in Sanford. The company currently employs 5,500 people in North Carolina.
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 and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and service to customers throughout the United States and more than 80 countries. The company has approximately 104,000 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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