US – World’s second-largest processor and marketer of meat products, Tyson Foods, has committed US$200 million to expand and upgrade operations in its beef plant in Amarillo, Texas.
The Amarillo plant is one of the largest of the company’s six beef facilities that produce commodity cuts of fresh beef and specialty products and includes a ground beef patty operation.
These products are packaged and boxed for sale to retail and foodservice customers throughout the US and internationally.
The expansion project that will begin this fall involves the construction of an additional 143,000-square-foot to the existing beef complex that will expand and enhance the facility’s existing operations floor.
The expanded complex is also to house the upgraded team members’ well-being areas including locker rooms, cafeteria, and office space.
In addition, it will modernize the facility and prioritizes team member safety, ergonomics, and food safety, and incorporate enhanced automation and new technologies, Tyson said.
The new space also supports several of the company’s sustainability efforts through energy and water conservation improvements.
Specially designed water utility equipment, pumps, and piping will automate and allow for a reduction in water usage.
The project overseen by Tyson Foods’ Amarillo which employs 4,000 team members and generates an annual payroll of US$180 million is expected to be completed by 2024 and will not add jobs to the plant.
Tyson is committed to being the most sought-after place to work and while it has invested heavily in new benefits for its team, this project will improve the onsite work experience for the team members, while making operations more efficient,” said Shane Miller, Group President, Tyson Foods Fresh Meats.
Tyson Foods’ beef business currently operates beef plants in Texas, Kansas, Nebraska, Illinois, and Washington.
The company receives cattle from close to 90 independent cattle suppliers in the state and its estimated Tyson Foods’ operations have a total economic impact of nearly US$3 billion in Texas.
Earlier, Tyson Foods reported an increase in Q3 net revenue from US$12.48 billion in fiscal 2021 to US$13.5 billion in fiscal 2022 but warned of supply constraints.
The meat giant posted GAAP operating income of US$1.03 billion, a 3% decrease from the year-ago period, while its adjusted operating income declined 27% to US$998 million.
In the first nine months of fiscal 2022, sales volume decreased across all of Tyson Foods’ meat segments with the exception of chicken, due to the impacts of supply chain constraints, reduced global demand, increased pricing, and reduction in volumes of chicken related to a fire at a production facility in 2021.
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