TreeHouse Foods intends to close Visalia facility

US-based packaged foods manufacturer TreeHouse Foods (TreeHouse) is planning to close its facility located in Visalia, California, by the end of the first quarter next year.

The closure is expected to affect jobs of nearly 294 employees working at the facility.

The decision to close the facility is said to be part of the company’s restructuring programme TreeHouse 2020 that was announced in August last year, which aims to fully integrate the company’s business and reduce its cost structure, as well as invest in other markets to address the evolving needs of its customers.

The Visalia facility is engaged in the production of pretzels and cereal snack mixes for the baked goods segment.

TreeHouse intends to move the pretzel production to other manufacturing facilities prior to the plant closure.

As per the company estimates, the costs to close the Visalia facility is expected to be nearly $21m, of which approximately $8m is projected to be in cash.

TreeHouse noted that the decision to close the facility was announced well in advance in order to provide its employees a sufficient notice period and to ensure a seamless transition for customers.

TreeHouse currently operates more than 40 facilities located in the US, Canada, and Italy, which primarily focus on private label products for both retail grocery and food away from home customers.