Windom plant closure could leave 1,000+ workers out of a job
WINDOM, Minn. -- The potential closing of a pork plant could leave more than 1,000 people without jobs in southwestern Minnesota.
HyLife Foods finished buying the Windom plant earlier this year, but last month they announced the plant could close its doors in early June if another buyer isn't found. The company has filed for bankruptcy, citing financial challenges from inflation, foreign exchange rates and high grain costs.
"I think everybody's concerned, and rightfully so. This is a big deal for Windom," said Mayor Dominic Jones.
A town of 4,800 people has 1,000 jobs at risk. HyLife Foods processes more than a million hogs a year and is easily Windom's largest employer.
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"When you lose 1,000 jobs, that affects our downtown businesses," said Jones.
The mayor says it comes down to numbers. If the plant closes, the town would lose nearly $300,000 in yearly tax revenue, and the school district would lose 125 students. HyLife has also been helping to pay for Windom's new wastewater treatment plant, and more than $2 million would be lost there if the company leaves.
"We hope everything works out, and we find a buyer and we continue on," said Jones.
But with a deadline of June 2, so far that hasn't happened. In a statement last month, Hylife said, "For some time now, the company has been exploring several strategic options that would have enabled it to continue go-forward operations despite these financial challenges. Unfortunately, so far, these efforts have not been successful."
And then there is the farm side of this. A lot of hog farmers in the area contract with HyLife Foods and rely on them for business. So do others in the agriculture industry.
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"The corn and soybeans that they use to feed those pigs come off a lot of the farms around here," said Ted Winter.
Winter is with Minnesota Farmers Union. He says a tax bill passed by lawmakers last weekend will help laid-off employees and with wastewater costs. But he says the best solution would be to find a new buyer that can help diversify the industry.
"We don't need one great, big plant doing all the pigs in the entire country. We need a lot of plants doing a lot of different kinds of processing," said Winter.
Mayor Jones wanted to thank all the lawmakers and community members who helped secure $14 million for Windom - if the plant closes. But there is still a question of where the employees would work if they are laid off.
