SPRINGDALE, Ark. -(Dow Jones)- Tyson Foods Inc. (TSN) (TSN) will close two Iowa plants but expand bacon production and shift operations in an effort to save $15 million to $20 milion pretax on an annual basis.

In a press release Friday, the company said the Iowa closings, effective March 17, will result in a second-quarter charge of about $16 million, or 3 cents a share. Tyson said 400 workers will be laid off.

Tyson will also spend more than $30 million to add bacon production to the Cherokee, Iowa, plant in late summer.

However, ham production at the Cherokee plant will shift to Concordia, Mo., and Buffalo, N.Y., temporarily reducing the work force of 650 by more than 50. Tyson expects to add about 70 jobs after the shift in production begins.

On Thursday, Tyson shares ended the regular trading session up 9 cents, or 0.5%, at $16.89.

Company Web site: http://www.tyson.com

Contact: Josee Rose
Dow Jones Newswires; 201-938-5400
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01-13-06 0939ET
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