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Tyson Foods Expands Capacity in Virginia

Tyson Foods, Inc., will invest $300 million in Danville, Virginia to build a 325,000 square-foot production facility for the company’s fully cooked products such as Chicken Nuggets.

The production facility’s location decision is heralded as a win-win for Tyson Foods and Danville, Virginia.


Video Spotlight:  


This post is based on the Food Business News article, Tyson Foods to invest $300 million in production plant, by Erica Shaffer, August 27, 2021; the Food Business News article, Tyson breaks ground on Virginia poultry plant, by Ryan McCarthy, October 22, 2021; and the YouTube video in the Spotlight. Image source: Photo by Scott Bauer, USDA-ARS.

Discussion Questions:

1. What is Tyson Foods’ plant manufacturing strategy in building a production facility in Danville, Virginia?

Guidance: Tyson Foods’ production facility in Danville, Virginia is dedicated to making fully cooked products such as Chicken Nuggets.  This is a product plan strategy as it requires specialization of labor, materials, and equipment for cooked product manufacturing.

2. What are the location factors that account for Tyson Foods’ decision to build its production facility in Danville, Virginia?

Guidance: The location factors include government incentives, tax credits, labor availability and level of education, as well as raw material availability.

Tyson Foods received an over $6 million grant from Virginia Governor Ralph Northam and a $1.5 million job tax credit for continued capital investment, sourcing local-grown products, and new job creation in Virginia.

Tyson Foods also considers labor in the region as viable and educated because of a workforce initiative under the collaboration of Virginia Economic Development Partnership, the Virginia Community College System and other higher education partners.

In addition, Tyson Foods has had hatchery, grain and processing operations in Virginia for more than 50 years, providing the source of chicken it needs for its production facility in Danville.

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