U.S.-based meat processor Cargill is to invest $48 million in its beef processing plant in Kansas in an effort to deliver better service to its customers, the company announced this week.
The money will be used to install a new automated distribution system at the company's Dodge City facility. The system will be located in a separate building, covering 62,000 sq ft, and will have the capacity to handle 155,000 boxes of beef at a time. This will increase the total capacity of the facility by 135,000 boxes, the company said.
Cargill stated that construction works will begin later this year, with the new system scheduled to be in action by the spring of 2015. It is expected to reduce costs and enable the company to function in a more sustainable way due to lower energy consumption.
The current distribution system has been in use for three decades. It will be replaced by a much more efficient and modern one, consisting of Retrotech automation and Viastore equipment.
According to John Keating, president of Cargill Beef, the new distribution system will allow the company to improve order accuracy and to ensure on-time delivery. Moreover, it will help the company deal with the increasing complexity and diversity of shipments to domestic and overseas markets, proving Cargill to be a highly reliable and efficient partner, he added.