JBS-Swift story turns to positive

We admit it: We were worried about the fate of JBS-Swift at the beginning of this year. First, the December immigration raids were a huge hit to the company. On top of the terrible public relations impact, the raids cost the company an estimated $30 million.

Not long afterward came the news that the company was for sale. The fate of the company, which is Weld County's largest employer, didn't seem bright.

Then in July, JBS SA, Latin America's largest beef processor, finalized the $1.5 billion deal. Ever since, things have been looking up.

Instead of being worried, we're elated about the future of the plant.

Third-quarter results for the company, released last week, showed that the business earned $16.7 million more in net revenue and, despite increased costs, the company managed to drop only $10 million in its earnings before interest, taxes and other expenses. Under previous owners, the company lost $98 million in its 2006 fiscal year.

"JBS has given the U.S. beef processing industry a very loud wake-up call," said Steve Kay, publisher of the trade magazine Cattle Buyer's Weekly, after analyzing the company's third-quarter earnings.

And even more than the financial success of the company, we're excited about having an employer that is investing in its Greeley business.

Before the sale to JBS, community leaders were holding their breaths about the fate of the company. Kay had been quoted that there was a good chance the company would close its headquarters in Greeley and also a possibility that the Greeley plant would be shut down entirely.

Had those two events happened, it would have been a huge hit to the economy of Weld County and northern Colorado. When the plant closed for a few years in the early '80s, Greeley hit a historically high unemployment rate of 7.5 percent, compared with 2.9 percent before the closure. About 900 jobs were lost with a payroll of about $15 million.

But instead of bad news coming from the company lately, there seems to be nothing but positives.

Instead of looking at the bottom line immediately, the company is investing in the Greeley plant. Adding 1,300 workers by the end of the year for a second shift is expected to cost $11.5 million.

They made this decision despite speculation that it would be nearly impossible to find the work force. Thus far, the company reports being ahead of schedule in its hiring.

This investment in the second shift, which ultimately makes the plant more profitable, is also a boon for the county's economy.

Those workers will be renting or buying area houses and apartments, paying local taxes and spending money locally on groceries and other items.

After years of cutbacks and layoffs, the company has owners who are willing to spend a little extra to help their business and, ultimately, our town.

We're not worried any more.