Smithfield Foods to Cease Slaughter at VA Plant

August 26, 2005 — 

Smithfield Foods has announced that it will consolidate its East Coast processing operations from three plants to two by October 28, 2005. The Smithfield South Facility (formerly Smithfield Packing) in Smithfield, VA will be converted to value-added fresh pork and processed meats production in 2006. Conversion is expected to take four months and will not affect other operations at the plant. The consolidation will affect approximately 570 of the company's 4000 employees in southeastern Virginia which the company hopes to rehire at one of its other facilities.

According to Joseph W. Luter, IV, president of Smithfield Packing this move was necessitated due to a lack of hogs resulting from "the moratorium on hog farms in North Carolina and the de facto moratorium in Virginia." In 2004, the Smithfield East Coast complex processed 11.6 million hogs at its 3 plants in North Carolina and Virginia. This decision will reduce the annual hog processing rate by 500,000 hogs according to Smithfield Packing.

The company plans to invest approximately $30 million at its facilities in Smithfield installing pre-cooked microwave bacon lines in 2006 (which will add 50 jobs), modernizing hog processing operations at Smithfield North (formerly Gwaltney) and constructing a new office building.

Source: http://www.smithfieldfoods.com/Investor/Press/press_view.asp?ID=281