Allen Harim is in negotiations to expand its investment in the United States through the acquisition of the Vlasic processing facility in Millsboro.
In 2011, the South Korean company earlier acquired assets of Allen Family Foods in Sussex County. Allen suffered a series of financial reverses during a down cycle for the broiler industry.
The remodeled facility will be state of the art for a poultry processing, cut-up, and cooking operation expected to employ an estimated 700 people. Allen Harim will operate the plant through its Harim Millsboro, LLC subsidiary.
“We are excited about bringing Millsboro into our family,” said Gary E. Gladys, CEO. “The new facility will expand our processing capacity, allow us to introduce new products and hire more employees. This will have a significant economic impact in Delaware, and serve as a symbol of our deep commitment to the United States market with an investment of an estimated $100 million.”
Allen Harim operates poultry processing facilities in Harbeson, Del. and Cordova, Md.; breeding operations in Liberty, NC; along with a hatchery, feed mill l, and corporate office in Seaford, Del. It has about 1,400 employees, about 270 independent growers, and 25 company-owned farms.
The new facility is expected to begin operations by November 2014.
“This new facility will help us expand into new markets as we continue to operate our existing processing plants and continue our strong relationship with our growers,” said Gladys. “We believe that our base on the Delmarva Peninsula provides a solid foundation for future growth, and this facility fits into that strategy.”
The Company also announced the sale of the Allen Biotech LLC rendering operation based in Linkwood, Md. to Valley Proteins, Inc., one of the largest rendering operations in the country. The sale of the rendering operation will allow us to concentrate on our core poultry business operations.
All of us at Allen Harim value and appreciate the support and commitment from the State of Delaware at all levels, including from Gov. Markell and the Departments of Agriculture, Labor, and Natural Resources and Environmental Control, and the Delaware Economic Development Office,” Gladys said. “We also appreciate the Governor and Secretary Kee’s trip to Korea, which helped cement the relationship between Harim and Delaware.”
In a joint release, Delaware officials said the following:
“We are pleased by this important expansion by Harim Group in Sussex County,” said Markell. “This decision strengthens Harim’s commitment to Delaware, and it helps many Delawareans in Sussex County who want to work for this growing company.”
“The poultry industry is the backbone of Delaware’s agriculture economy, and Harim is now making it stronger,” said state Agriculture Secretary Ed Kee, who stated that he first introduced the idea of purchasing the plant to Harim executives. “Our poultry growers will have more opportunity; our workers will have more jobs and our state will sell more chicken, helping cement Sussex County’s position as the No. 1 broiler-producing county in the nation. ”
“Harim’s decision to expand its U.S. interests here in the First State further emphasizes that Delaware is a great place to grow a business,” said Delaware Economic Development Office Director Levin. “Our economy needs a strong poultry industry, and we believe that Harim’s move to Millsboro will go a long way toward fulfilling that goal. ”
“I’ve worked to keep this plant open for more than 20 years, and I was happy to be a part of an all-hands-on-deck effort to make sure we replaced the jobs that could be lost if the plant closed for good,” U.S. Sen. tom Carper said. “We started looking for a company that might utilize this fine facility. Our efforts have finally paid off, and I am grateful that Allen Harim will be taking over this manufacturing facility in order to expand its poultry processing operation and eventually restore hundreds of much-needed jobs to Sussex County.”
