HUTCHINSON, Kan. — CHS has announced Friday that they will close its soy processing facility in Hutchinson immediately, eliminating 77 jobs.

Questions about the future of the facility had been hovering for several weeks, but officially came in an announcement to employees Friday morning. Annette Degnan, Marketing and Communications Director for CHS confirmed the closing stating that the the facility is one of three that will shut down. Degnan says that over the last 11 months CHS tried to sell the facility and keep the workforce intact but market conditions and other factors left the company without a buyer.

Sources say employees will be paid through the end of January.

Below is a statement released from CHS.

In recent months, Jay Debertin, CHS CEO, shared strategic priorities for CHS with employees and our member-owners. Primary among these is restoring financial flexibility for CHS, which includes reviewing all company assets to determine which are a strategic fit for CHS now and into the future.

As part of its broader FY18 CHS priorities of restoring financial flexibility and positioning the company, its owners and other stakeholders for long-term success, CHS has ceased production at, and permanently closed, soybean processing facilities at Hutchinson, Kan., and Creston, Iowa, and closed its Innovation and Technology Center at Eagan, Minn.

CHS will continue to focus on operations which are more closely aligned with other CHS commodity-based core businesses.

CHS remains committed to helping its owners strengthen and grow their operations.

Also, some background information:

The news was delivered in person to the 77 employees, by the plant manager, the CHS director of operations for this division, and a human resources representative.

CHS acquired the facility in April 2008, from Legacy Foods. The plant produced Ultra-Soy® brand textured soy proteins, an ingredient used by leading food service and food manufacturers as a nutritional supplement in processed foods containing meat, and in snacks and health foods. Ultra-Soy helped food manufacturers extend meat, which reduced meat and seafood costs while adding protein to enhance the nutritional profile.