TreeHouse Foods to close two facilities in US
TreeHouse Foods has plans to close its two facilities in Brooklyn Park, Minnesota; and Plymouth, Indiana; as well as shift its non-peanut packaging operations out of Dothan, Alabama, US.
The decision is part of company’s TreeHouse 2020 restructuring plan, which aims to improve its position in the market and operating margin structure through its category and customer portfolio management programme, as well as manufacturing and supply chain optimisation.
TreeHouse chairman and CEO Sam Reed said: "The decisions to close these facilities are difficult ones given their impact on families and communities.
"However, despite the toll they exact, these measures are required if we are to remain competitive in a rapidly changing marketplace for packaged foods.
“In order to win in today's marketplace, we must not only produce the finest quality at the lowest costs but also fully utilise the capacity of our plants and the capability of our people in doing so."
The Brooklyn Park facility produces boxed dinners and packaged side dishes and has nearly 90 employees.
The Plymouth facility has nearly 150 employees and produces banana peppers, jalapeños, pickles and pickle relish.
Production at both facilities is expected to stop by the end of this year.
The company plans to shift its non-peanut packaging operations out of Dothan over a period of ten months starting from November.
TreeHouse Foods will provide outplacement support to employees affected by the transition.
The decision is estimated to cost approximately $44.5m, of which approximately $29.7m is expected to be in cash.
Components of the charges include non-cash asset write-offs of nearly $14.8m, employee-related costs of $7m, and other closure costs totalling approximately $22.7m.
TreeHouse Foods manufactures shelf-stable, refrigerated, frozen and fresh products.