Citing the high costs of doing business in California, Smithfield Foods has announced that it will be closing its pork processing plant in Vernon, Calif.
The company says that it will close the plant in Vernon, a Los Angeles suburb, early next year. The move, which will eliminate some 1,800 jobs, was done in consultation with the unions representing the workers.
A company statement cited the high cost of doing business in California as the primary reason for the decision. These include utilities, taxes, transportation and labor. In addition, Smithfield is cutting back on its hog herd in the Western U.S. in general, and is looking into selling off its farms in California and Arizona.
"We are grateful to our team members in the Western region for their dedication and invaluable contributions to our mission,” COO Brady Stewart said in the statement. “We are committed to providing financial and other transition assistance to employees impacted by this difficult decision."
