Apr 20, 2009 10:43 AM

Pilgrim’s Pride Corporation plans to close its chicken processing plant in Dalton GA within 60 days and consolidate production at the company’s processing facility in Chattanooga TN. These actions are aimed at improving the company’s capacity utilization and reducing its costs.

Approximately 280 employees who work at the Dalton plant will be affected by the closing. Pilgrim’s Pride will provide transition programs to employees whose positions are eliminated to assist them in securing new employment, filing for unemployment, and obtaining other applicable benefits. The hatchery in Cohutta GA will continue to operate. Other live-production operations will also continue to function, but as a part of the Chattanooga complex or other nearby operations. About 120 independent contract growers who currently supply birds to the Dalton processing plant will be transitioned to begin supplying the company’s Chattanooga plant or other nearby company facilities within around 90 days.

No disruption will occur in the supply of product to retail, foodservice, and industrial customers as a result of closing the Dalton facility.

The company filed voluntary Chapter 11 petitions December 1, 2008. These Chapter 11 cases are being jointly administered under case number 08-45664. Operations in Mexico and certain operations in the United States were not included in the filing and continue to operate as usual.