A poultry company in Seguin plans to expand its local operations and bring millions of dollars in investments to town.
Tyson Foods, Inc. recently announced plans to enlarge its Seguin facility to increase production capacity for its chicken. The plan, which the company said is an attempt to meet increasing demand, is expected to represent a $58 million capital investment in the Seguin Community, said Josh Schneuker, city of Seguin Economic Development Corporation executive director.
Seguin City Council approved on Tuesday an incentive deal that provides Tyson a 50% abatement on city property taxes related to the expansion for five years, Schneuker said.
Currently, Tyson’s Seguin plant encompasses 108,836 square feet, located at 1200 W. Kingsbury St. in the city. The planned expansion will add 40,000 square feet to the plant to and will include purchase and installation state-of-the-art machinery and equipment, Tyson said. The machinery and equipment will help the company better serve its customers and consumers, Tyson said.
Tyson’s project creates no new jobs, Schneuker said. However, the deal with the city also stipulates that the food company maintain current staffing levels at the Seguin location for the duration of the agreement, the economic development director said.
“This project is not going to result in any new job creation,” Schneuker said. “What it does is help ensure we’re able to retain the existing workforce at Tyson for at least the next five years.”
Seguin still will reap other benefits from as well, he said. The city will see a little more than $600,000 in new tax revenue as a result of the project, Schneuker said.
That is on top of any taxes the company already pays, he said.
“All of their existing real and personal property on the tax rolls, which I believe is about $9 million, is all still subject to property tax,” Schneuker said. “There would be no impact on the city on existing property tax revenue through Tyson.”
Tyson’s deal was only with the city, he said. County and school district taxes were not included in Tyson’s deal with Seguin, Schneuker said.
Also, the plant likely will see increases in electric and water/wastewater usage, which will mean additional revenue to the city through its utility services, he said.
The deal and expansion signal wins for the company and the city, Schneuker said.
“We’re excited about the expansion project at Seguin, which is part of our commitment to meet increasing customer and consumer demand for Tyson chicken, while delivering on our strategy of accelerating long-term growth,” said David Bray, group president of Poultry for Tyson Foods.
Tyson expects to increase production of chicken products for its foodservice customers, Bray said. The company’s Seguin facility employees about 550 people, which accounted for more than $38 million in wages during its fiscal year 2021, Bray said.
Included in those wages were $16 million to farmers who raise chickens for Tyson, Bray said.
Tyson’s commitment to Seguin over the years hasn’t gone unnoticed, Seguin Mayor Donna Dodgen said.
“Since 1989, Tyson has helped to create excellent employment opportunities for our residents, has served as a great community partner, and has helped to grow Seguin’s economic base,” she said. “We are very excited by this announcement and look forward to continuing our long and mutually beneficial relationship.”
Many of those customers and consumers are local residents. Improving service to the community helps to demonstrate Tyson’s commitment to the area it serves, Seguin City Manager Steve Parker said.
“Tyson Foods is an exemplary corporate citizen, continuously contributing to the betterment of our community,” he said. “We are very excited about this expansion project and are proud that they have chosen to grow their footprint within the city of Seguin.”