VERNON, Calif. — Meat-packing large Smithfield Meals mentioned Friday it should shut its solely California plant subsequent yr, citing the escalating price of doing enterprise within the state.

The Farmer John meat-packing plant in Vernon, an industrial suburb south of Los Angeles, will shut down in February, with its 1,800 staff receiving severance and job placement assist together with bonuses for many who select to remain on the job till the closure, mentioned Jim Monroe, vp of company affairs.

Some employees, who on common earn about $21 per hour, additionally can have alternatives to relocate to different amenities owned by the Virginia-based Smithfield Meals Inc.

The Vernon plant slaughters pigs and packages merchandise similar to ham and bacon. Some operations can be moved to different amenities within the Midwest, however the total discount in processing capability is prompting Smithfield to cut back its sow herd in Utah. The corporate additionally mentioned it’s exploring methods to exit its farms in California and Arizona.

Monroe mentioned working prices in California are a lot larger than in different areas of the nation, together with taxes and the worth of water, electrical energy and pure fuel.

“Our utility prices in California are 3 1/2 occasions larger per head than our different areas the place they do the identical kind of labor,” he mentioned.

The shutdown shouldn’t be anticipated to cut back provide or enhance prices on merchandise, and Farmer John Merchandise will nonetheless be offered in California, Monroe mentioned.

“There gained’t be any affect on our clients,” he mentioned.

The Vernon plant has been the goal of repeated protests by animal rights activists over its remedy of hogs. It additionally was hard-hit in the course of the COVID-19 pandemic, with some 300 staff uncovered to infections in 2020. A number of have been hospitalized.

California’s Division of Occupational Security and Well being fined Smithfield Meals about $60,000 for security violations that uncovered employees to an infection.

Smithfield Meals was based in Smithfield, Virginia, in 1936 and in response to its web site offers greater than 40,000 jobs in the USA. It was acquired in 2013 by Hong Kong-based WH Group.