The Western Sugar factory in Torrington, Wyo., is shifting its packaging operations over to Fort Morgan, Colo., and Scottsbluff, Neb.
The Torrington factory will only be responsible for sugar storage and bulk shipping, although those will eventually be shifted to other locations as well.
Currently there are 76 positions working at the plant year-round and more than 200 employees are needed during the campaign, which is harvesting, transportation and initial processing.
Staffing in the Fort Morgan and Scottsbluff plants will not likely increase and the Torrington plant will lose 70 positions, leaving only six positions after sugar production ends late winter of 2016.
The Western Sugar Cooperative announced in mid-May that it entered into a new long-term credit commitment led by CoBank, a financial services institution that provides credit to agribusiness cooperatives and other rural businesses throughout the United States.
This commitment will allow the cooperative to step up its operations investments as part of a long-term strategy to remain cost competitive.
The cooperative will be investing in newer technology and expanding both its Scottsbluff and Fort Morgan facilities, while significantly reducing its operating activities in Torrington over the next 15-to-24 months.
“This is a very important decision for our cooperative” said Nick Lapaseotes, Western Sugar chairman. “It supports our long-term mission to serve our customers well. It will also help Western Sugar build a valuable market for our growers.”
“We have been seeking ways to invest in improving our productivity and reliability,” said Rodney Perry, Western Sugar president and CEO. “These projects at Scottsbluff and Fort Morgan will allow us to make significant improvements in our operations providing strong financial returns for our growers. It also positions us for future growth. Once the projects are complete, we will continue to operate the Torrington facility as a sugar storage and shipping location.”
Western Sugar Cooperative began cutting employees in Torrington on May 14.
Closing the Wyoming facility will save on shipping costs. About 60 percent of beets processed in Torrington already pass through Scottsbluff.
Consequently, the Scottsbluff facility will absorb most of the production as it more than doubles its capacity. The facility in Fort Morgan will also increase capacity by about 51 percent.