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Slim Jim plant to reopen in August

Fri. June 19, 2009; Posted: 11:44 AM
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Jun 19, 2009 (Omaha World-Herald - McClatchy-Tribune Information Services via COMTEX) -- CAG | Quote | Chart | News | PowerRating -- Limited production of Slim Jim meat snacks will resume in August at a ConAgra Foods plant in North Carolina that was damaged in a deadly explosion last week, company officials said Thursday.

The company has shifted some production to other facilities, has increased orders at third-party manufacturers and has signed interim agreements with other manufacturers.

The June 9 explosion killed three workers, injured dozens more and knocked out ConAgra's main Slim Jim production plant.

The packaging area of the plant in Garner, N.C., sustained the heaviest damage and will remain closed for the foreseeable future, said ConAgra spokesman Dave Jackson. It was not immediately known how many of the 900 employees will return when production resumes, Jackson said.

The explosion has been traced to a natural gas leak. Federal and state officials are investigating the blast.

In a filing with the Securities and Exchange Commission, ConAgra said a third-party contractor was installing a natural-gas-fired hot water system. ConAgra said it also was conducting an investigation in cooperation with federal and local agencies and independent experts.

Additional details will not be released until the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives has issued a final report, the company said. The agency has determined that the explosion was an accident.

Slim Jims are available at reduced levels, and customers have been cooperating with short-term supply disruptions, ConAgra officials said. The company expects to achieve acceptable service levels during the second quarter, which begins in September.

ConAgra said the long-term financial impact of the blast should not be significant. More details will be released June 25 with fourth-quarter earnings.

Costs stemming from the explosion will be treated as one-time items in earnings reports for fiscal 2010, which began June 1/21, the company said.

To see more of the Omaha World-Herald, or to subscribe to the newspaper, go to
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For full details on Conagra Foods (CAG) click here. Conagra Foods (CAG) has Short Term PowerRatings of 6. Details on Conagra Foods (CAG) Short Term PowerRatings is available at This Link.

    


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