In the US, Cherokee Foods has confirmed that it is buying ConAgra's poultry processing plant in Milan, Missouri and that it will be investing in new equipment to update the facility.

Successfully concluding a multi-party transaction with Milan Poultry, and ConAgra, Cherokee Foods has confirmed that it is acquiring the Milan Poultry processing plant that was due to close this week. Instead, the Milan plant will remain open, under Cherokee Foods' management and ownership, said Lenna Gordon, president of Cherokee Foods.

Effective from 2 December 2002, Cherokee Foods will be open for business at the facility in a transition period that will involve a restructuring of plant operations, staffing and product production, the firm said. Gordon confirmed that production will resume shortly.

Cherokee secured a transaction with ConAgra for continued processing of certain products during a transition period, as well as for the substantial equipment assets it formerly utilised. "We are grateful to ConAgra for enabling equipment to be transferred under very generous terms," Gordon said.

The facility is Cherokee's first wholly owned poultry products processing facility. The company formerly utilised contract producers and packagers to fulfil orders for its national food distribution network.

Actual work force levels through the transition period remain to be determined, the company said. In a planning process that begins next week, all current plant workers will be invited to submit applications.

The company said it will continue efforts to secure other long term State of Missouri business development assistance for expansion of the Milan plant.

As business conditions allow, Cherokee Foods intends to absorb more workers and potentially, could employ an even great number than were to be laid off.