Tyson Foods launches tech at new Virginia plant
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A device worn by employees at the new plant in Virginia. Photo: Courtesy of Tyson Foods
Hourly employees of a new chicken plant will wear a Fitbit-like device on their arms to monitor productivity and help keep them safe.
What's happening: Tyson Foods CEO Donnie King celebrated the opening of the company's newest fully cooked chicken plant in Danville, Virginia, Tuesday morning.
- The event drew Republican Virginia Gov. Glenn Youngkin, who praised the company for the $300 million investment, providing jobs and making one of his favorites: chicken nuggets.
Driving the news: The relative bright spot for the company comes after more than a year with disappointing earnings, corporate job cuts, office consolidations and announcements to shutter eight plants, impacting about 5,000 hourly workers.
- One location was a poultry slaughter plant in Glen Allen, Virginia, where nearly 700 employees were displaced and about 70 farmer contracts weren't renewed.
The intrigue: Despite a net loss of jobs, Tyson Foods still qualified for nearly $8 million in Virginia tax incentives and tax credits.
The big picture: Replacing inefficient, outdated or too-expensive-to-fix plants with more modern versions is part of the company's long-term strategy to improve its supply chain and operations, King told Axios in a phone conversation.
- "It's better chicken more more efficiently; better chicken faster," King said. "In essence, that's what we're doing."
Details: Technology plays a large role in the new plant and is part of a three-year $1.3 billion automation investment announced in 2021, he said.
- Employees wear MākuSafe devices on their arms that help identify repetitive injury risks, detect chemical leaks and even let them summon safety managers.
- In the event of an evacuation, they may be able to help plant management ensure everyone is accounted for.
- Automatic high-speed packers will fill boxes with product and robotic arms will palletize boxes for shipping.
Of note: Meatpackers have been criticized for use of wearable technologies, citing privacy concerns.
- While Tyson said the devices will help with productivity, a spokesperson confirmed they only sync with sensors in certain locations and not in restrooms.
By the numbers: The plant will produce about 4 million pounds of chicken a week — 20-30% more than comparably sized facilities, King said.
- It's 325,000 square feet — almost the size of two Walmart Supercenters side by side.
- More than 200 people work there now, but that will grow to about 375 as production ramps up.
What's next: Tyson plans to open two new plants early next year: a $180 million prepared-foods facility in Caseyville, Illinois, and a $355 million bacon plant in Bowling Green, Kentucky.
- Combined, the two will employ about 850 people.
What we're watching: Tyson will continue to review its existing U.S. plants to see if they've "reached the end of their useful life," King told Axios.
Disclosure: Reporter Worth Sparkman formerly worked at Tyson Foods.