Hormel Foods Corp. announced that due to falling profits for its canned food lines, the company would be closing its Stockton, Calif. processing plant by the end of February. The closing of the plant, which canned chili and beef stew, would lead to the layoffs of about 110 workers.
"The decision to cease operations at our Stockton plant was a very difficult one because of its impact on our valued team members who work there,” Donald J. Temperley, vice president of grocery products, said in a statement. “Moving the production to our Atlanta and Beloit, Wis., facilities is a business decision based on the scale, production capacity and efficiency available at those locations.”
The company recently reported record fourth-quarter and year-end results, but it noted that its grocery products division saw a sales decline of 3 percent and a profit decline of 21 percent, due to sustained record high meat prices and weak sales.
A business agent for Teamsters Local 601, which represents the plant’s workers, said Hormel notified the union about the pending closure Monday, reports The Record.
“The union is greatly disappointed that Hormel would announce the closing of this profitable facility during the holiday season and terminate the employment of hundreds of workers who have provided years of dedicated service to the company,” Pablo Barrera said.
Source: The Record