TreeHouse Foods to close two plants in US

TreeHouse Foods plans to close two manufacturing plants in Azusa, California, and Ripon, Wisconsin, in the US.

This decision was made after a detailed analysis of the company’s plant network to eliminate excess production capacity.

Employing 660 people, the Azusa facility and manufactures bars and snack products for retail customers.

TreeHouse plans to close this facility in the second quarter of next year. Products made at the facility will be shifted to other facilities within the company’s existing network.

The firm does not expect to experience any supply disruptions during the transition period.

The Ripon facility employs 60 people and produces private label sugar wafer cookies for grocery retailers.

Due to falling demand, the firm decided to discontinue sugar wafer production. The firm plans to close the facility in the fourth quarter of this year.

The two plants were part of the company’s acquisition of ConAgra Foods in February.

TreeHouse stated that it will provide severance benefits, transitional support and outplacement services to affected employees.

The closure of the two facilities are expected to cost approximately $17m, approximately $14.5m of which is expected to be in cash.