020902 Hormel Continues Move to “Value-Added”September 4, 2002Austin, MN (Business Wire) - Hormel Foods Corporation announced it will complete the transformation of its Rochelle, Ill., plant from a hog slaughter operation to a value-added product processing facility. It will produce cured and smoked meats. "Branded, value-added products accounted for 78% of our total sales mix in fiscal 2001, and one of our growth strategies is to expand our value-added product offering further because they serve consumers' busy lifestyles," said Joel W. Johnson, president and chief executive officer of Hormel Foods Corporation. "The transition at the Rochelle, Ill., plant will allow us to expand capacity to meet growing demand for value- added products while maximizing operating efficiencies." The company plans to conclude slaughter activities at the plant on Nov. 8, 2002, and begin the renovation immediately. Through normal attrition and increased processing operations the company plans to minimize the impact to the workforce. The size and design of the Rochelle slaughter department make it cost-prohibitive to operate in a competitive environment, despite an excellent workforce and management team. The conversion of this area to further processing will enhance the already strong manufacturing base at the Rochelle facility. This decision will result in the discontinuance of relationships with many outstanding hog producers who have been loyal suppliers to the Rochelle facility. Both contract and open market hog purchases are affected.
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