Simmons cuts 223 jobs in Siloam Springs
by June 27, 2011 10:38 am 187 views
Editor’s note: Roby Brock, with our content partner Talk Business, wrote this report. He can be reached at [email protected]
Poultry processor Simmons Foods Inc. will cut 223 jobs at a plant in Siloam Springs and move some production to nearby Decatur in an effort to control spiking costs caused by corn prices.
The plant in Siloam Springs will continue to produce pet food operations.
Simmons officials said that they will work to move displaced workers into open positions within the company. The company also operates a large processing facility in Van Buren.
The rising corn prices cited by company leaders have been a complicating factor in the poultry industry for several years. Corn has doubled in price in the last year due to low domestic stocks and tight supplies worldwide. However in recent weeks, the price of corn has fallen as substitutes for the animal feed have rattled markets and changes to ethanol (corn-based) fuel incentives have been debated in Washington, D.C.
Siloam Springs-based Simmons Foods employs roughly 6,000 people in five U.S. states and Canada.
It’s been a tough week for layoffs in Arkansas. Earlier this week, Rheem Corp. announced it would transfer 250 employees at its Fort Smith air conditioning factory to an expanded plant in Mexico.