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STX Beef opens in South Texas

Source: Drovers | March 27, 2019

STX Beef is open for business. The south Texas beef packer formerly known as Kane Beef began operations this week in Corpus Christi under new ownership. All safety and operational inspections have been completed, and the company said work began at 25 percent of capacity, and operations will continue to ramp up over the next few weeks. At full capacity the plant harvests 1,400 head of cattle per day, making it the 12th largest beef packer in the United States.

“This is an exciting day,” Ryan Connelly, president of STX Beef Co., said Monday. “First, we would like to welcome back all the former employees of Kane Beef that have joined the STX Beef team. As soon as we completed the acquisition, getting folks back to work was our top priority.”

The reopening of STX Beef is important as it is the only beef packer in the south Texas region. Last year the company processed roughly 270,000 head of cattle from about 30 feedyards, and it employs more than 700 workers.

Kane Beef filed for bankruptcy in early January, and court filings show the company owed between $50 million and $100 million dollars. STX Beef Co., an affiliate of JDH Capital LLC, a Houston-based real estate development company, purchased the meat-processing plant March 15 for $28 million.

While most of its beef customers are in Texas, the company has also exported boxed beef to more than 25 countries.

“Today’s startup is just the beginning of a new chapter for the business, our team, and our partnership with cattle producers, customers, and the community,” Connelly said after reopening the plant March 25. “We are very excited about the future of STX Beef.”

Written by:
kristin
Published on:
March 28, 2019

Categories: Business, The Cattleman Now, The Cattleman Now - App

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