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Tyson to Invest $1.3B in Automation

The company projects to save more than $450 million by 2024.

On Thursday, Tyson Foods announced a more than $1.3 billion investment in automation over the next three years.

The move is a response to the U.S. meatpacking industry's issues with labor shortages over the past two years. 

According to CEO Donnie King, the investment will improve production and cut labor costs. 

The company projects to save more than $450 million, cumulatively, by 2024, according to Reuters

One area that will see an uptick in automation is deboning chicken. 

According to the North American Meat Institute, the labor shortage is the driving force behind food inflation.

In August, Tyson said the labor shortage was forcing the company to take six days to do five days' work.

According to the company, at least 10% of its factory positions are unfilled on any given day.

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