AP NEWS

Nebraska losing food plant jobs as Louisiana plant expands

December 21, 2018

NEBRASKA CITY, Neb. (AP) — About 45 workers will lose their jobs when a food company closes its southeast Nebraska plant, but an estimated 44 jobs will be created in Louisiana, where the production will be moved, officials said.

Nebraska City station KNCY reported that Diversified Foods and Seasonings executives told workers Thursday that plans are to close the plant by Jan. 4 and move the frozen and refrigerated food production to a Louisiana plant.

Louisiana Gov. John Bel Edwards and Diversified Foods CEO Peter Smith announced Friday that the company will invest $12 million to expand its plant near Madisonville, Louisiana, creating 44 direct jobs, 110 new indirect jobs and retaining 120 existing jobs.

Louisiana offered Diversified Foods an incentive package that includes a $500,000 performance-based grant to be used for infrastructure improvements. The company also is expected to apply for the state’s Enterprise Zone and Industrial Tax Exemption programs.

The enterprise program offers a one-time $3,500 or $1,000 tax credit for each new job and either up to $100,000 per job in state sales tax rebates or a 1.5 percent investment tax credit on total capital investment. The industrial tax exemption cuts 80 percent from property taxes for up to 10 years.

Diversified Foods, based in Covington, Louisiana, also has a plant in Theodore, Alabama.

The job market remains strong for the Nebraska City workers who will be looking for work. Daniel Mauk with Nebraska City Area Economic Development Corp. said local plants for Cargill and Honeywell are trying to hire more employees.

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Information from: KNCY-AM, http://www.kncycountry.com

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