JBS completes expansion in Utah; Pilgrim’s to grow in Kentucky
GREELEY — JBS USA, majority shareholder of Greeley-based chicken producer Pilgrim’s Pride Corp., has completed the $100 million expansion of its beef-processing facility in Hyrum, Utah, company officials said. Meanwhile, Pilgrim’s Pride received approval from the state of Kentucky for a $24 million expansion project at its poultry-processing complex in Mayfield.
The newly expanded JBS facility in Hyrum, north of Salt Lake City, became fully operational during the week of May 23.
The 191,000-square-foot addition features a new fabrications building, ground-beef facility and distribution center. The plant expansion raises production levels by 400 head of cattle per day, company officials said, and improves plant efficiencies and product offerings.
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“The completion of these new facilities expands our ability to meet the growing demand for ground beef,” said JBS spokesman John Flynn in a news release. “It also allows us to strengthen our relationship with the region’s beef and dairy producers, whose high-quality cattle have been a large measure of Hyrum’s historical success and customer satisfaction.”
The beef facility in Hyrum was built in 1936 by E.A. Miller Meat and Livestock Co., and was acquired by JBS USA in 2007. It processes nearly 500,000 head of cattle per year. About 20 percent of its production goes to Japan, Taiwan, Mexico and other countries.
The Pilgrim’s Pride project in Kentucky, which is scheduled to begin Oct. 12, includes removal or relocation of existing processing equipment and installation of new equipment to enable the facility to transition from a fresh food-service and deboning operation to a deboned-portioning operation by July 2017. The transition will enable the facility to process larger birds and provide greater efficiency and service to key customers, company officials said Friday. Upon completion, the Mayfield plant will increase its live-weight production by about 1 million pounds per week. It also will provide more than 155 additional jobs and will provide for construction of 75 additional chicken houses by local family farms.
The expansion is part of Pilgrim’s $190 million strategic capital investment plan to enhance growth with key customers, reinvest cash flow back into the business and improve efficiencies.
Launched in 1990, the Mayfield complex was the first poultry processing facility in Kentucky.
JBS USA’s Brazilian parent company, JBS SA (Bovespa: JBSS3), had announced last month that it plans to spin off its businesses outside of Brazil into a new company called JBS Foods International, which multiple outlets have reported would be based in Ireland. JBS USA touts itself as the largest cattle feeder in the world.
