Tyson plans to sell two Alabama plants
Tyson Foods Inc. has signed a letter of intent to sell two of their Alabama poultry plants, which have been a part of Tyson foods for 20 years now, to Koch Foods Inc., a long-time, primary customer of the plants, as part of strategic efforts to reduce the production of fresh, commodity chicken.
The sale, which is expected to be completed by the end of May, will include some of the plants’ supporting facilities, including a feed mill and hatcheries.
According to Bill Lovette, senior group vice president of poultry and prepared foods for Tyson, it makes economic sense to sell these operations because Tyson has become more focused on value-added chicken production, whereas these plants are primarily involved in the production of commodity chicken products.
“While it’s difficult to leave these communities, we believe Koch is a good fit for these operations, especially since it’s already the primary customer of the fresh chicken produced at both plants.”