Pilgrims Announces Strategic Investments; Operational Streamlining
GREELEY, Colo., Nov. 19, 2013 (GLOBE NEWSWIRE) -- Pilgrim's Pride Corporation
(Nasdaq:PPC) today announced several operational changes to improve
efficiencies as part of its goal to generate approximately $200 million in
savings in 2014. Effective January 24, 2014, Pilgrim's will expand its
operations in Russellville, Ala., and Douglas, Ga., to absorb the current
fresh poultry processing operations in Boaz, Ala. This consolidation will
allow the company to maintain current production levels, more efficiently
utilize idle capacity and generate more than $20 million in incremental
margin.In addition, the company will invest approximately $10 million to
upgrade its feed mill in Falkville, Ala., and add approximately 100 jobs at
the Douglas and Russellville operations.
"Today's announcement reflects the strength of our balance sheet, our
willingness to strategically invest in our business and our continued
commitment to the pursuit of operational excellence," said Bill Lovette,
President and CEO of Pilgrim's Pride Corporation. "Given our decision to
consolidate operations, our intent is to offer retention incentives to
encourage many of our Boaz team members to remain with the company in
different capacities. We are confident these capital improvement projects will
position the company, our stakeholders and our team members for success for
many years to come."
Purchased by Pilgrim's in 2007, Boaz is the company's smallest operation in
terms of processing capacity and employs approximately 1,100 people. Many
Boaz employees will be offered opportunities at other nearby Pilgrim's
operations and all employees will be offered retention incentives. The company
anticipates that contract growers who currently supply the Boaz operation will
have an opportunity to meet the enhanced supply needs of Pilgrim's operations
in Russellville and Douglas.
Pilgrim's, consistent with its long-term strategy to align the company's core
competencies with customer needs, will also invest approximately $25 million
to expandlarge bird deboningcapacityand modernize utilities at its Mt.
Pleasant, Texas, facility.The company previously announced an investment
of$25million to upgrade its feed milland processing operationsin
The strategic decisions announced today will allow Pilgrim's to optimize its
operational network and efficiently deploy resources and capital to facilities
with improved infrastructure, greater scale and more favorable opportunities
for long-term, sustainable profitability.
About Pilgrim's Pride
Pilgrim's Pride Corporation employs approximately 37,500 people and operates
chicken processing plants and prepared-foods facilities in 12 states, Puerto
Rico and Mexico. The company's primary distribution is through retailers and
CONTACT: For Media Inquiries
202 445 6168
For Investor Relations Inquiries
970 506 8192
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