RTTNews | Dec 9, 2021 10:35PM EST

22:35 Thursday, December 9, 2021 (RTTNews.com) - Tyson Foods plans to invest more than $1.3 billion in new automation capabilities over the next three years to increase yields, reduce labor costs and associated risks, and ultimately deliver cumulative savings.

The new productivity program is expected to deliver more than $1 billion in recurring savings by fiscal 2024.

As part of the new productivity initiative, the company expects to open 12 new plants over the next two years, increasing capacity by about 1.3 billion pounds. It is also targeting having 50% of its volume as value-added by the end of fiscal 2024.

The company expects a recovery of its chicken business to a 5 to 7% operating margin by mid-fiscal 2022 and expects to deliver stronger margins through fiscal 2024.

The company expects to deliver more than $250 million in savings by leveraging new digital solutions like artificial intelligence and predictive analytics to drive efficiency in operations, supply chain planning, logistics, and warehousing.

The company said it is also focused on ensuring deployed capital delivers strong returns and is targeting about 12% return on invested capital.

Read the original article on RTTNews ( https://www.rttnews.com/3248293/tyson-foods-plans-to-invest-more-than-1-3-bln-for-plants-automation.aspx)

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