Tyson Expands Plant Production in Canada
5/12/05 11:48:21 AM
By Laura Bruegge, Arkansasbusiness.com Daily Report
Tyson Foods Inc. of Springdale announced Wednesday that it plans to increase its beef slaughter capacity by mid-June at its Lakeside Packers plant in Alberta, Canada.
Construction on the $17 million plant expansion began in fall 2003 and is expected to increase Lakeside's slaughter capacity by about 24 percent, from 3,800-4,700 cattle per day. The plant, which began operating in 1974, will also increase the work force there by about 300 to a total of 2,700.
The project includes the expansion of the plant's beef carcass coolers and streamlining parts of the beef slaughter operation. "Our investment in the project will help address the backlog of cattle caused by the continued closure of the U.S. border," said John Tyson, chairman and CEO of Tyson Foods, in a released statement.
Tyson Foods said that it continues to run its U.S. beef plants at reduced levels of production because of the U.S. ban on Canadian cattle.
"The U.S. beef industry is part of a North America market and we believe it's imperative for there to be a harmonization of trade rules with Canada and Mexico," the company said in a brief filed in April. The brief supported a U.S. Department of Agriculture appeal to the reopen the U.S. border to Canadian cattle imports.
Wednesday, Tyson declared a quarterly dividend of 4 cents per share on its class A common stock and 3.5 cents per share on class B common stock, payable on Sept. 15 to shareholders of record on Sept. 1.
Shares of Tyson (NYSE: TSN) were trading at $18.66 on Thursday after closing at $18.42 on Wednesday.
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posted by Dr. Harlan Hughes 2:46 PM