Smithfield Foods will close its Altoona ham boning operation, laying off 314 workers

Virginia-based Smithfield Foods says it will shutter its Altoona ham boning facility, a move that will leave 314 workers without jobs.

Smithfield's announcement this week comes on the heels of Tyson Foods closing its plant Friday in Perry, displacing 1,300 workers. The plant was Perry's largest employer.

Smithfield, owned by publicly traded WH Group, a Hong Kong-based company, says it will close the Altoona operation Aug. 30. The company said the move will improve manufacturing efficiency, with central Iowa production moving to Smithfield plants in Monmouth, Illinois; Sioux Falls, South Dakota; and Crete, Nebraska.

Smithfield said officials will meet with employees individually to discuss severance pay, financial incentives "to assure business continuity," and other employment opportunities within the company.

“We appreciate the good work our Altoona employees have done over the years and are committed to supporting every employee through this transition,” Doug Sutton, chief manufacturing officer for Smithfield Foods, said in a statement. He said Smithfield has been "successful in retaining many of our people" in other positions "during previous consolidations."

Smithfield operated in Lineage Inc.'s 325,000-square-foot cold storage facility at 612 Adventureland Drive N.E. The food processor uses about 10% of the space, said Altoona Economic Development Director Chad Quick. Iowa Cold Storage also shares the space.

Smithfield said it had operated in Altoona since 2020.

Altoona City Manager Randy Pierce said Lineage said state officials have agreed to help workers find new employment. The fast-growing city is home to large employers like Adventureland Park, Prairie Meadows Racetrack and Casino, Bass Pro Shops and Meta's Facebook data center.

2023 was tough year for pork industry

A glut of pigs has hurt profits for meatpackers as well as Iowa and U.S. pork producers, who experienced the largest losses in history last year.

More: Iowa pork producers' losses worst in 25 years amid high costs and declining demand

In April, WH Group said its first-quarter operating losses for U.S. and Mexico pork were $62 million. That, however, was a big improvement from the $218 million it said it lost during the same period a year earlier, thanks, in part, to operational improvements.

Smithfield said it employs nearly 4,000 people in Iowa at its farms and its food-processing facilities in Carroll, Denison, Des Moines, Mason City, Orange City, Sioux Center and Sioux City.

Last month, Arkansas-based Tyson reported second-quarter net earnings of $145 million compared with $97 million in losses a year earlier.

Tyson, with operations across Iowa, said in March it would permanently close the Perry plant. The company said as the shutdown came last week that about 200 of the displaced employees have agreed to take jobs at other Tyson plants. It also retained nearly 70 employees to finish some work in connection with the closure, a city official said.

Perry city and business leaders expressed optimism that they eventually will find a new tenant for the building.

Donnelle Eller covers agriculture, the environment and energy for the Register. Reach her at deller@registermedia.com or 515-284-8457.

This article originally appeared on Des Moines Register: Smithfield Foods will close its Altoona ham boning operation, laying off 314 workers