Officials express 'cautious optimism' Windom plant will soon reopen

State officials said it’s possible the shuttered HyLife plant in Windom could be operational again in “a couple months.” The plant’s closure on June 2 resulted in more than 1,000 workers losing their jobs.

The Minnesota Department of Agriculture has been in contact with the plant’s new owner Premium Iowa Pork. It purchased the southwestern Minnesota plant for $14 million.

State officials say the company is assessing the facility and considering equipment updates and upgrades.

Minnesota Agriculture Commissioner Thom Petersen told MPR News the plant may be operational “in a couple months and contributing to the [Windom] community.”

Petersen said work is being done to ensure that the plant is sustainable for the future.

HyLife reported monthly losses of $6 million. The Windom plant changed hands a few times before HyLife purchased the plant in 2020. 

“So for [Premium Iowa Pork] to get in there and look at what they have in the plant, configure it so that it's going to work for them is really important,” Petersen said. “In the long run, I think that’s a good thing.”

Possible automation

Windom City Administrator Steve Nasby said in an email this week the city met with Premium Iowa Pork leaders and that “they will be working on the completion of the sale and taking the next 60 days to evaluate the plant and formulate their strategies for the future.”

It’s possible that the plant will be more automated with fewer workers, but Petersen described Windom officials, former plant workers and farmers as having “cautious optimism” because Premium Iowa Pork also owns a plant in Luverne, Minn., in Rock County.  

“They’ve done a really nice job [in Luverne] and hopefully they can continue that success in Windom,” Petersen said. “That’s what I see when I look at them coming in [Windom]. And we can look at what they’ve done and learn and have hope for what they’re going to do.”

Former workers waiting

HyLife filed for Chapter 11 bankruptcy in late April. About one-fifth of Windom’s population worked at the plant. About half of the workforce were employed on temporary H-2B visas and most either returned to their home countries or found work elsewhere. 

Many of the workers who weren’t on visas are currently on unemployment, Petersen said. Some are waiting to see the future of the plant under new ownership he said.  

“There’s a lot of workers that have history there, so we’re always glad that there’s a safety net of unemployment and hope that some of those workers will return to the plant,” he added. “That’s helpful to Premium Iowa Pork that there’s a workforce that’s there as they look at the automation and things that they want in that plant to fit what their market is going to be.”

Meanwhile, the Minnesota Department of Labor and Industry is investigating HyLife for alleged wage theft that was revealed in a statement of interest on June 6 to the Department of Homeland Security.

Petersen said “it’s disappointing” to hear a case open but didn’t comment further and referred to the DLI as the agency leading the investigation. 

State stands ready for transition

The state Legislature appropriated $14 million for the city of Windom in case the plant shut down. Officials connected former plant workers with potential new employers through career fairs. 

Windom has allocated $13 million of the fund already. About $10 million will facilitate the completion of the affordable housing that was being built for HyLife workers. Another $2 million will repay loans issued to Windom for wastewater improvements related to the plant. About $1 million was used to recruit a buyer for the purchase of the plant. 

Windom Area Schools also received $1 million to cover the possible loss in state funding because of an estimated 107 students leaving the district as a result of their parents losing their jobs. 

Petersen said the state is working with Windom in managing the aid and also connecting the new plant owners with the Minnesota Pollution Control Agency. He said there are funding streams available to upgrade the Windom plant. 

“We stand ready and have communicated all those things to the new owners and to the city that we can be a resource and work through all that,” he said. “It’s quite a bit of involvement with the state as we go forward.”

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