Tyson announces plan to close plant in Lexington

Tyson Foods announced Friday that it will close its beef plant in Lexington, a move that will put hundreds of people out of jobs in the central Nebraska community.

Tyson also said it would reduce capacity at its Amarillo, Texas, plant to just one shift a day.

The food company did not explain the reason for the closure of what is Lexington’s largest employer, with more than 2,500 workers, nor did it say when the plant will close, It said in a news release that it would increase production at other plants in its system.

“Tyson Foods recognizes the impact these decisions have on team members and the communities where we operate,” the company said in the release. “The company is committed to supporting our team members through this transition, including helping them apply for open positions at other facilities and providing relocation benefits.”

Tyson did not say whether workers would receive any severance pay.

Nebraska officials expressed their disappointment at the closure.

During a press call Sunday afternoon, Rep. Mike Flood said the shutdown is a reflection of several national issues at play – a smaller U.S. cattle herd and drought in the southwest.

“I recently visited the beef processing plant in Schuyler that is owned and operated by Cargill, and they had capacity issues," Flood said. "They were nowhere near their capacity. And so my sense is that when you have a smaller herd size, for a variety of reasons, packers have to make decisions like this. Now, the fact that they picked Lexington — I haven't had the opportunity to sit down with Tyson and unpack all of that.”

Sen. Deb Fischer said in a statement posted on social media that she was “extremely disappointed” by the sudden closure.

“As the single largest employer in Lexington, Tyson’s announcement will have a devastating impact on a truly wonderful community, the region, and our state,” the post said.

Gov. Jim Pillen said in a statement that Nebraska’s cattle industry is “resilient and the envy of the world.”

“Big picture – our excellent cattlemen and cattle feeders have emerging opportunities and will still have the Tyson market to sell into as its planned reorganization will boost capacity and jobs at other Nebraska plants,” Pillen said. “Tyson leadership has also promised to continue to work on future value-added opportunities here in the state. The state of Nebraska is ready to build for the future and do what it can do to support employees affected by this change.”

Tyson also has large meat plants in Madison, Dakota City and Omaha. It also owns the Smart Chicken plant in Waverly.