Tyson to invest $47m on constructing new beef warehouse

US-based meat products producer Tyson Fresh Meats will be investing around $47m on a new, expanded boxed beef warehouse at its Lexington plant.

The project would involve the building of a 50,000ft² warehouse on the existing complex that produces commodity cuts of fresh beef, including ribs, loins, chucks and rounds, and various ground beef products.

The new facility, which is expected to be completed by mid-2016, is being built to enhance the flow, efficiency and capacity of the plant’s boxed beef storage and distribution systems.

Tyson Fresh Meats president Steve Stouffer said: "We’re reinvesting in our Lexington plant because it’s an important part of our beef business, and we want to make sure it continues to operate successfully.

"We appreciate the support we’ve received from our team members, area cattle producers, and the Lexington community since the plant opened almost 25 years ago, and we want them to know we expect our facility to remain a major contributor to the local economy for many more years."

The plant currently employs 2,700 people and generates an annual payroll of $86m. However, the expansion is not expected to create new jobs.

Tyson’s brands includes Jimmy Dean, Hillshire Farm, Sara Lee frozen bakery, Ball Park, Wright, Aidells and State Fair.

Headquartered in Arkansas, the company serves and supplies its products to customers throughout the US, as well as approximately 130 other countries. In 2014, it spent more than $2.2bn buying cattle to supply the plant.

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Image: US-based Tyson Fresh Meats, a subsidiary of Tyson Foods supplies premium beef and pork. Photo: courtesy of Tyson Foods.