SureBeam shuts irradiation plant
service centre in an effort to consolidate its processing services
business and address a current oversupply of capacity.
SureBeam is to close its Vernon, California irradiation processing service centre in an effort to consolidate its processing services business and address a current oversupply of capacity.
The company has been having financial problems for some time now, and the latest move is an effort to try and push the company out of the red. The irradiation of foods in America, especially meats such as ground beef, has for some time been pushed by the US authorities, however take up of the technology has not been as fast as expected, due to the expense of the process and continued concerns over the effects it has on food.
SureBeam has reassured all of its customers in the US that the opportunity to continue to process food products at its other domestic facilities will still exist.
"SureBeam has experienced growth in its processing services business in the past three years," stated John Arme, SureBeam chairman and CEO. "Despite a continuing increase in processed ground beef, at this time the utilisation level has not yet reached the point where the costs of maintaining the capacity of the four state-of-the-art processing centres are offset. As a result, this action is being taken as a prudent business measure to enable SureBeam to realise immediate budget efficiencies and to make adjustments that better meet current short-term and intermediate-term market demand." Arme also added, "SureBeam will continue to align its assets in a manner that best positions the company for long-term business opportunity."
The move will be keenly observed in Europe, where the irradiation of foods is still strictly controlled by EU legislation. There have been repeated efforts to update this legislation but EU authorities have said that they still want to see more scientific evidence to prove that the process is safe.
Headquartered in San Diego, California, SureBeam operates processing service centres in Illinois, Iowa, Texas and Rio de Janeiro, Brazil. The Company is a leading provider of electron beam food safety systems and services for the food industry. The company's patented system is based on electron beam and x-ray technology that destroys harmful food-borne bacteria.
