Dive Brief:
- Tyson Foods announced the closure of a Hillshire Brands plant in Rome, Georgia, resulting in the layoff of 168 workers. The decision was made due to recent changes that made continued operations at the site unfeasible.
- The plant will halt operations on May 31, as per a WARN notice filed with the state. Tyson is urging affected employees to consider applying for other positions within the company.
- This facility was responsible for manufacturing Nature Valley Granola bars for General Mills on a contract basis. Tyson mentioned that the plant operated under a unique single-customer model, although specific details were not provided.
Dive Insight:
The closure of the Rome plant is part of Tyson’s strategy to streamline its manufacturing network for improved efficiency and cost savings. Earlier this year, the company shut down its largest beef plant in Nebraska to align its operations with market conditions affected by a cattle shortage.
Acquired as part of the Hillshire Brands deal in 2014, the Rome plant has a history of producing baked goods for major food companies like Sara Lee. It transitioned to granola bar production in the early 2000s, according to local news reports.
By focusing on its meat and prepared foods segments, including brands like Jimmy Dean and Hillshire Farm, Tyson aims to capitalize on growth opportunities. The company’s prepared foods segment saw a significant increase in sales and operating income in the first quarter of this year.