After owning Kunzler & Co. for less than two months, Clemens Food Group is selling the Lancaster plant and announced that jobs could be in jeopardy.
In a recent letter to employees, per WTAJ News, Clemens announced it was pursuing the sale of the location and that some production, for instance, the smoked meats division, will be moved to a newly-built building in Hatfield Township.
“Jobs may be impacted,” stated the letter, per WTAJ.
“It’s premature to calculate the total impact on employment at this time, as we are working on these moves in tandem with identifying a buyer for the Lancaster facility,” Clemens Food Group Senior Communications Manager Stephanie Simon told WTAJ.
A report by Penn Live states the Kunzler & Co. union would lose at least 60 jobs, and potentially more down the line. Union Food & Commercial Workers Local 152 President Daniel Ross Jr. told Penn Live that Clemens was sent a 5-page letter from the union with numerous questions on the future of the union and the company.
“Local 152 sincerely hopes the Clemens family will value the livelihood of working families in Lancaster over corporate profits,” Ross told Penn Live.
Clemens is looking for a new owner who would produce private-label hot dogs at the plant, per the report.
When it was announced in early May that Clemens acquired the 123-year-old pork processor in Lancaster County, the union was reportedly caught by surprise, and was even “cautiously optimistic” about Clemens Food Group, specifically when it came to its collective bargaining sessions.
The fifth largest producer of pork in the U.S. with $2 billion in annual revenue and a $45 million hog feed mill project took ownership of all Kunzler facilities and transportation.
“The decision to acquire Kunzler stems from both organizations’ earned industry reputations, as both are viewed as trusted providers of high-quality products to the marketplace,” said Clemens Food Group President Brad Clemens in the National Hog Farmer report. “As Chris Kunzler sought a successor to carry forward his family’s legacy after more than 123 years, I’m honored Clemens Food Group emerged as their ideal steward as there are many similarities between our cultures and commitment to excellence.”
At present, Clemens Food Group employs about 5,000 people in multiple states, while Kunzler employed about 600 total. As of 2017, Kunzler & Co generated $150 million in annual revenue.
