Pilgrim's Pride Corporation Closing NC Chicken Processing Complex

Closings are due to soaring feed-ingredient costs resulting from corn-based ethanol production.

March 14, 2008

CHATHAM COUNTY NC NEWS -- Pilgrim's Pride Corporation (NYSE: PPC), the largest chicken company in the U.S. and the second-largest in Mexico, announced it will close a chicken processing complex in Siler City located in Chatham County, North Carolina. In addition, six of the Company's 13 distribution centers in the United States will also close in response to the crisis facing the U.S. chicken industry. The crisis is a direct result from soaring feed-ingredient costs resulting from corn-based ethanol production. Pilgrim's Pride's actions are part of a plan to curtail losses amid record-high costs for corn, soybean meal and other feed ingredients and an oversupply of chicken in the United States. The closings, which are expected to begin immediately and will be completed by June, will result in the elimination of approximately 1,100 jobs.

According to the official Worker Adjustment and Retraining Notification (WARN) notice received on March 12, 2008. Layoffs at the North Carolina plant and its companion feed mill and hatchery will occur between mid-May and early June affecting 836 workers.

On March 12, 2008, North Carolina Governor Easley directed the N.C. Department of Commerce to deploy a Rapid Response Team to the Pilgrim's Pride chicken processing plant announcing, "I have directed the Rapid Response Team to work with Pilgrim's Pride and local employment partners to help these workers begin the process either to find new jobs or receive additional training so they can remain successful in our competitive economy. Our Rapid Response Team is committed to reducing the amount of time these employees are out of work."

Meanwhile, the Commerce Department's Division of Employment and Training has contacted the company to begin determining what services will be needed and to schedule an initial meeting with company managers.

The Rapid Response Team helps coordinate transitional services for employees who have lost their jobs due to a layoff or facility closure. Services may include job search and placement assistance, career counseling, labor market information and assessment of skills and needs. The team consists of representatives from state and local agencies, including the local work force development board, the Employment Security Commission and the NC Community College System.

Published by:
Rob Cross
mailto:editor@357news.com

# # #