Tyson Foods will invest heavily in Springdale with the acquisition of Cargill's turkey plant, which closed last August. The deal received formal approval on Tuesday, November 25, when the city council approved the issuance of industrial bonds to support the site's redevelopment.
Nathan McKay, president of Tyson's poultry division, presented the project to the committee on November 17, confirming the intention to transform the plant into a modern chicken processing facility. The site will not include slaughtering operations—which are already performed at the Tyson facility on Spring Street—but will be used for portioning and further processing.
The agenda of the meeting indicated an expected investment of approximately 127 million dollars to bring the factory up to required standards. The approval of the industrial bonds now allows Tyson to purchase the facility: the company will then transfer ownership to the city in exchange for the bond funds, while the city will lease it back to Tyson, granting the group the property tax exemption provided by Arkansas law. Legal counsel, appointed by Kutak Rock LLP, will be covered by the proceeds of the bond issue or directly by Tyson Foods.
According to the proposal presented, the site will employ approximately 200 employees once the modernization work is completed, which will take up to three years. The company hasn't ruled out the possibility of relocating production to other facilities once the new plant is up and running, given the site's greater automation compared to a traditional turkey processing line.
Tyson's existing nearby facility—the group's first, opened in 1958—will continue its operations dedicated to the slaughter and processing of Cornish game hen. With this acquisition, Tyson further consolidates its historic presence in Springdale and strengthens its production portfolio in a key area for the U.S. poultry industry.
