Updated 03/13/2008 06:50 PM
Chicken processing plant set to close
To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.
Then come back here and refresh the page.
SILER CITY, N.C. -- Chickens come by the truck full in Siler City, but in a couple of months, the chickens and the jobs they provide will be gone.
Pilgrim's Pride is closing a chicken processing complex in Siler City and six distribution centers around the country.
"They just made a meeting and told us they're going to shut it down in two months ... and that's a shock to us," said Castro Fenandez, who works at the facility.
Pilgrim's Pride is one of largest employers in Chatham County, with more than 800 workers. A high percentage of them are Hispanic.
Many workers aren't sure how they will support their families. Local businesses are expecting a hit, as well.
"It's going to be a lot of Spanish people that don't have a job in two months," said Fenandez.
The company said it's being forced to shut down due to the rising cost of corn and chicken feed.
"In the last two years, it's 104 percent higher than it was two years ago ... caused by the government's ethanol policy of subsidizing ethanol production," said Ray Atkinson, director of corporate communications for Pilgrim’s Pride.
Many workers aren't sure how they will support their families. Local businesses are expecting a hit, as well. Scooter's Café, which is located a minute's walk from the plant, is a favorite for break time.
"A lot of [customers] ... come from the plant down there, and they're closing and it's really going to hurt us," said owner Larry Binkley.
Some say slowing business in Chatham Co. is a growing trend.
"We're increasingly becoming a bedroom community. People build their houses here. They go work in Research Triangle Park, they go work in Chapel Hill," said Chatham Co. Commissioner George Lucier.
Lucier said the chicken processing plant's closing will also affect local chicken farmers.
"They're going to lose some of their market unless they want to drive two hours to get to some other place to sell their chickens," said Lucier.
Pilgrim's Pride said it will do all it can to help employees, including a severance package for salaried workers. Despite that, the county is wondering how it can ease the pain.
"What can we do to help fill that space? Is there another chicken processing plant that can come into that space, and what can the county do to encourage that?" asked Lucier.
The governor also announced that a state Rapid Response Team will be at the plant to help workers transition or find new jobs. The plant will close between May 26 and June 6.