Packaged foods and beverages manufacturer TreeHouse Foods has announced plans to remove non-peanut packaging operations from its Dothan facility in Alabama, US.
In addition, the company is set to close its Brooklyn Park facility located in Minnesota and its Plymouth facility in Indiana.
Go deeper with GlobalData
Nearly 135 employees working at the Dothan facility will lose their jobs due to a production transition, which will continue over a ten-month period from November.
The decisions are a part of the company’s restructuring plan, TreeHouse 2020, which is expected to improve its competitive position and margin structure by optimising manufacturing and supply chain operations.
TreeHouse Foods 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.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“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.”
TreeHouse Foods said it will provide outplacement support to all its employees who will lose their jobs due to the downsizing initiatives.
The Brooklyn Park facility, which produces boxed dinners and packaged side dishes, employs nearly 90 people, while Plymouth employs approximately 150 people.
Productions at both the locations are scheduled to cease by the end of this year.
Total costs associated with the closures of the facilities are anticipated to be $44.5m, nearly $29.7m of which will be in cash.
The company has a comprehensive offering of packaging formats and flavour profiles.
