The Acquisition of the struggling Tyson Foods Plant by OSI Food Solutions in 2016

OSI Food Solutions is a processing food company that is reported by the Cook County Recorder to have purchased the former Chicago Tyson Foods plant in 2016 for a whopping $7.4 million. The Tyson Foods company had been undergoing operational challenges because, in November 2016, 480 jobs were lost after Tyson Foods shut down the establishment that was located at 4201 S. Ashland Ave. Before October, the Tyson Food plant only had 250 employees.

Alison Kovaleski who was the spokeswoman of OSI Food Solutions stated that OSI Food Solutions was the one which offered employment to the 250 employees and she had no statement to record about the future plans of the company.

On June 8, 2016, OSI Food Solutions made a statement on their website that the facility that covered 200,000 square foot located in the Yards neighborhood was close to one of OSI Food Solutions facility in Chicago, and it was going to be turned around into a business plant that would grow. This plant was a huge addition to the OSI manufacturing plan as senior executive vice president Kevin Scott stated in an announcement on the website.

OSI is a private company that produces bacon, breakfast sausage, and other meat products, as well as other food retail brands and food service products. OSI operates in sixteen countries and it has more than sixty facilities in these countries. The acquisition of Tyson Foods was well into their grand plan of business. Tyson Foods was a producer of hospitality meals where it distributed foods to clients in the vicinity of the South Side plant. Some of the food products that were made at this location include omelets, crepes, meatballs, chicken cordon bleu, and sauces.

During the closure of the Tyson Foods plant, the executive of the OSI company said that the facility had a challenge of meeting the customer needs that were changing. Although they closed down one plant, two facilities located in Chicago at 400 S Jefferson St., and 3548 N. Koster Ave., are still in operation as they produce steaks.

The closure of the facility in Chicago was a calculated move by the company. OSI had been following up with the struggling plant before even making an offer on the acquisition of the plant. This acquisition is going to bring a lot of benefits to the company at large and change even the business landscape in the food processing business in Chicago.

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