Tyson to rebuild plant after fire, assures weekly pay for full-time workers
Adds analyst comment, share movement
Aug 12 (Reuters) - U.S. meat processor Tyson Foods Inc TSN.N said on Monday it would rebuild its Holcomb, Kansas beef plant after a fire last week partly destroyed the facility and that full-time, active employees would be paid weekly until production resumes.
The company said the plant would be shut "indefinitely" after the Friday night fire that put some 3,800 workers out of work.
"Tyson Foods has built in some redundancy to handle situations like these and we will use other plants within our network to help keep our supply chain full," Steve Stouffer, group president of Tyson Fresh Meats said.
There were no casualties reported due to the fire, the cause of which is still being investigated.
The plant processed around 6,000 cattle per day, representing around 5% of the total industry and a bit over 20% of Tyson's capacity, J.P. Morgan analyst Ken Goldman said.
Goldman estimates that losing the plant could result in as much as a 50 cent impact to the company's fiscal 2019 earnings per share.
Tyson's shares fell about 1.4% in morning trading.
(Reporting by Uday Sampath in Bengaluru; Editing by Shailesh Kuber and Shinjini Ganguli)