Tyson Foods Inc. said on Friday that it plans to shut down three prepared food facilities it acquired in 2001, a move that comes as the company prepares to buy Chicago-based Hillshire Brands Inc.
The plants produce some foods similar to those Hillshire is known for, such as deli meats and hot dogs. Together, the closures will mean the loss of about 950 jobs.
Arkansas-based Tyson said it made the decision as part of its ongoing push to improve the performance of its prepared foods business. The company plans to use more of the available capacity it has at some other prepared food plants.
Tyson’s Cherokee, Iowa, plant will close as of Sept. 27. The Buffalo, New York, and Santa Teresa, New Mexico, plants should close during the first half of 2015, Tyson said. The move affects about 450 people at Cherokee, 300 at Buffalo and 200 at Santa Teresa, Tyson said.
“These plants have been struggling financially. After long and careful consideration, we’ve concluded it no longer makes business sense to keep them open,” Donnie King, Tyson’s president of prepared foods, customer and consumer solutions said in a statement.
Tyson said it has run all three plants since 2001, when the company acquired IBP Inc.
The Cherokee plant makes deli meats, hams, Canadian bacon and hot dogs. The Buffalo facility produces hot dogs, sausage and hams. Santa Teresa makes dinner meats, diced ham, roast beef and other cooked foods.