Tyson still eligible for state incentives for Pittsylvania chicken plant despite Glen Allen closure

Tyson Foods will continue to be eligible for millions in state economic development grants linked to a facility it’s constructing in Pittsylvania County despite its announcement it will close a major plant in Hanover County that will lead to the loss of 692 jobs, said the Virginia Economic Development Partnership.

In 2021, former Gov. Ralph Northam’s administration announced Tyson would receive $8 million in incentives, in addition to tax credits, to site a new plant in Pittsylvania. In return, the company promised to invest almost $300 million and create 376 new jobs.

Incentives offered to Tyson included a $3 million grant from the Commonwealth’s Opportunity Fund, a $3 million Virginia Investment Performance Grant — which “encourages continued capital investment by existing Virginia companies” — a $500,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund and $1.5 million from the Tobacco Region Opportunity Fund.

Tyson was also eligible for state job creation tax credits.

At least $6 million of those incentives will remain available to Tyson even as it shutters its Glen Allen plant because the performance agreements for the Commonwealth’s Opportunity Fund and Virginia Investment Performance grants linked to the Pittsylvania project “are solely based on the investment and jobs performance at that particular facility,” said VEDP spokesperson Suzanne Clark in an email.

“The closing of the Hanover plant is not related to the opening of the Pittsylvania plant and the two facilities produce different product lines; therefore, the COF and VIP incentive contracts that VEDP has entered into for the Pittsylvania County project are not impacted by the closure,” Clark said.

Clark said Tyson has not yet received any payments from the Commonwealth’s Opportunity Fund or Virginia Investment Performance grants. The facility is expected to open later this year.