LITTLE ROCK — Allens Inc. on Friday consolidated some of its Van Buren operations into its Siloam Springs plant, affecting about 150 jobs.
The Siloam Springs based vegetable processing company said it was working with outplacement services and the state to assist employees who lost their positions, according to a release.
The number of employees who lost their jobs as a result of the consolidation was unavailable Friday.
“We regret the loss of jobs,” said Jackie Krutsch, executive director of Van Buren Chamber of Commerce. “That’s always a huge impact for our community.”
The unemployment rate for the Fort Smith Metropolitan Statistical Area that includes Van Buren was 8.1 percent in December, down from 8.5 percent compared with the same period in 2011.
The state’s unemployment rate was 7.1 percent for December, down from 7.5 percent for the same period last year.
The area is still adjusting to the June closing of the Whirlpool Corp. plant in nearby Fort Smith, which resulted in the loss of nearly 1,000 manufacturing jobs. At its high point, the plant employed as many as 4,600. The factory remains vacant.
Allens employs several hundred people at various sites in Siloams Springs. The exact number of employees was unavailable Friday night.
Siloam Springs officials were pleased the move might bring jobs to the area.
“It’s good for our region,” said Wayne Mays, president and chief executive officer of Siloam Springs Chamber of Commerce. “We’re always happy when there’s not a net loss in our region.”
The unemployment rate for the Fayetteville-Springdale-Rogers Metropolitan Statistical area was 5.1 percent in December, down from 5.7 percent for December 2011.
Allens’ Van Buren plant will continue to process hominy, refried beans and snack foods, and the local distribution center will remain open. The move is part of the company’s plan to remain a leader in its sector and improve its competitiveness.
In March 2012, the company said it was selling its frozen-vegetable unit to a North American subsidiary of Bonduelle Group of France for an undisclosed sum. In September of 2011, Allens ended merger talks with Seneca Foods Corp. of Marion, N.Y.
Privately-held Allens employs more than 1,200 nationwide, according to its website. It was established in 1926.
Information for this article was contributed by Jeff Della Rosa of NWA Media.
Business, Pages 29 on 03/02/2013