Tyson Foods has said it is to axe part of a canning plant in the second shutdown notice by a major US meat company in three days.

Tyson, whose position as the world's largest meat producer is being challenged by Brazil's JBS, said it would in mid-March move some production capacity at a factory in Council Bluffs, Iowa to sites in Tennessee and Texas.

The shuffle is Tyson's first major strategic under new chief executive Donnie Smith.

The switch, which will axe 480 jobs, follows Smithfield Foods' announcement on Wednesday that it was to close a hog processing plant, also in Iowa, from April and takes the total posts lost in the announcement to 1,930.

"We must continue to control costs and improve efficiencies," Gary Sheneman, Tyson's head of case-ready beef and pork, said.

"Shifting some production from Council Bluffs to out other plants it the right thing to do for our overall business. The unfortunate downside is the impact on some of our employees."

Market reaction 

However, like Smithfield Foods' cut - which was attributed to the inefficiency of the plant, which was beyond economic repair – Tyson's move was cautiously welcomed by investors.

BB&T Capital Markets upgraded Tyson to "buy" from "hold", noting Tyson's reassurance of growing demand for canned products in the US south east, which is more easily met from Tennessee and Texas.

"Our overall case-ready business is operating successfully," Mr Sheneman said.

Tyson shares closed up 0.9% at $13.77 in New York.