American Foods buys P&G mill site Procter & Gamble's East River mill, now purchased by The American Food Groups (photo by H. Marc Larson). The Green Bay-based meat processor will expand its facilities and add 200 jobs By Tim Harty News-Chronicle On the heels of Schneider National announcing it will hire 200 more truck drivers, Green Bay's labor force soon will get another boost. Meat processor American Foods Group will add 200 jobs as it offsets one of the city's more troubling business developments of 2002 - the announcement Procter & Gamble will stop producing Bounce in Green Bay, cut 135 jobs and close its East River Mill by June 2004. American Foods Group will purchase the 20-acre East River Mill site as well as Procter & Gamble's 19-acre truck facility at Elizabeth and Radisson streets. Purchase price was not disclosed, but American Foods Group president and CEO Carl Kuehne said fair market value was paid for the properties. Based on tax records in 2002, the fair market value for the properties was about $8.4 million, with the mill site accounting for $7.6 million. Brown County Treasurer Kerry Blaney said he does not know the fair market value for this year. The property purchase is only part of the investment for American Foods Group, which must convert the facilities for hamburger grinding, storage and distribution operations. Livestock delivery and harvesting will remain solely at American Foods Group's facility at 544 Acme St. "We have to prepare the building to meet USDA inspection requirements for meat plants," said Kuehne, estimating it could cost as much as $10 million to put in new floors with drains, replace walls and install refrigeration units. Then comes the additional expense of purchasing the equipment that will be used in the plant. The move into the new facility will take place gradually over the next nine to 12 months, while Procter & Gamble continues to phase out its operations. Kuehne said the 200 new jobs will be production employees, meat cutters, warehouse- and mechanical-type employees and supervisors. The pay scale for full-time workers will range from $8.95 to $14.50 per hour, but some mechanical positions will pay more. The property purchase concludes a search for facilities begun about two years ago by American Foods, which has been growing steadily in recent years, especially internationally as it exports to more than 50 countries. International sales account for more than 15 percent of the company's annual sales. "Over the last several years, we've had a roughly 20 percent increase in our overall sales," said Kuehne. "Our ground-beef business has grown and continues to grow. But, instead of 10-pound chubs of meat being sent to stores to be ground by them, we're selling more case and tray-ready meat (already ground, ready for display in markets or cooking at restaurants). We're doing the grinding and putting the meat in one-, three-, five-pound retail packages." The city of Green Bay was helping American Foods Group look for property, but when Procter & Gamble announced its downsizing plans last September, Mayor Paul Jadin said he didn't have to do anything. American Foods recognized the opportunity and acted immediately. "Trying to find a 30-, 40-acre parcel in the city is not the easiest to find," said Kuehne. "This has worked out quite well for us." The mill sale was a relief to Procter & Gamble as well as the city. Neither wanted the worst-case scenario of the property going unsold for several years - Procter & Gamble for tax purposes; Green Bay because of the negative economic impact on the city. "It's good news," Jadin said of the sale. "It has value in two ways. American Foods was looking for a distribution center the last few years. It's unfortunate, the circumstances that made it available - we don't want to lose business or see workers laid off - but it works out well for American Foods. "And it brings 200 jobs to the area. It helps balance the jobs that have been lost." Paul Ehrfurth, vice president of economic development for the Green Bay Area Chamber of Commerce, added, "You never like to see local companies downsize. On the other hand, the positive side is the facilities will be used by a strong local company here. They'll grow here and stay here." American Foods will use the former Procter & Gamble truck facility to store its trailers. It operates about 120 trucks and has "many more trailers," said Kuehne. FYI American Foods Group is a Fortune 500 company with headquarters in Green Bay. It ranks among the largest food processors in the United States, offering boxed meat, ground beef and case- and tray-ready products in the retail and food-service industries. The company employs 1,750 people, including 1,445 in Green Bay. Its other production facilities are in Mitchell, S.D., and Sharonville, Ohio.