GREELEY, COLO. — As part of its goal to generate approximately $200 million in savings in 2014, Pilgrim’s Pride Corp. has announced plans to expand operations in Russellville, Ala., and Douglas, Ga., to absorb its fresh poultry processing operations in Boaz, Ala. Effective Jan. 24, 2014, the consolidation will allow Pilgrim’s to more efficiently utilize idle capacity and generate more than $20 million in incremental margin.
The company said it will invest approximately $10 million in upgrading its Falkville, Ala., feed mill and add approximately 100 jobs at the Douglas and Russellville operations. Pilgrim’s also plans to invest approximately $25 million to expand large bird deboning capacity and upgrade utilities at its Mount Pleasant, Texas, facility, in addition to a previously announced $25 million investment to update its feed mill and processing operations in Enterprise, Ala.
Pilgrim’s Boaz operation, purchased by the company in 2007, employs approximately 1,100 people. Many of the employees will be offered opportunities at other nearby Pilgrim’s operations.“Today’s announcement reflects the strength of our balance sheet, our willingness to strategically invest in our business and our continued commitment to the pursuit of operational excellence,” said Bill Lovette, president and chief executive officer of Pilgrim’s Pride. “Given our decision to consolidate operations, our intent is to offer retention incentives to encourage many of our Boaz team members to remain with the company in different capacities. We are confident these capital improvement projects will position the company, our stakeholders and our team members for success for many years to come.”