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Tyson to Shut Kansas Plant as US Beef Shortage Erodes Profits

WALLULA, WA - MAY 01: The exterior of a Tyson Fresh Meats plant is pictured on May 1, 2020 in Wallula, Washington. Over 150 workers at the plant have tested positive for COVID-19, according to local health officials. (Photo by David Ryder/Getty Images) (David Ryder/Photographer: David Ryder/Getty )

(Bloomberg) -- Tyson Foods Inc. will shut a meat plant in Kansas next year, eliminating 809 jobs, as the company seeks to slash costs amid a downturn in the beef industry. 

The suspension of operations in Emporia is expected to be complete by Feb. 14, the company said in a letter to the Kansas Department of Commerce, citing a push to “operate more efficiently.” Activities at its laboratory in the same town also will be halted. 

The move adds to a series of plant shutdowns by Springdale, Arkansas-based Tyson Foods since last year as part of a broader turnaround effort. While profits at its chicken business have rebounded this year, the company’s beef operation — its largest — remains under pressure due to a severe shortage of cattle in the US. 

The Emporia facility provides seasoned and marinated proteins and ground beef, according to Tyson’s website. Cattle-slaughtering operations at the plant had been halted in 2008 due to excess capacity in the industry.

A company spokesperson said Tyson Foods is working with state and local officials to provide resources to those impacted. 

Shares were 0.2% lower as of 3:48 p.m. in New York. 

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