Log in or Register for enhanced features | Forgotten Password?
White Papers | Suppliers | Events | Report Store | Companies | Dining Club | Drinks | Retail | Videos
Processed Foods
Savory Snacks
Return to: FBR Home | Processed Foods | Savory Snacks

TreeHouse Foods to close two production facilities in US

FBR Staff Writer Published 25 May 2016

US-based food company TreeHouse Foods is planning to close two production facilities located in Azusa, California and Ripon, Wisconsin.

The shutdown of facilities is part of the company's efforts to streamline operations by reducing excess manufacturing capacity.

Azuza facility employs 600 people and manufactures bars and snack products, mainly for retail customers. The full closure of the facility and stoppage of production at the facility is expected to take place in the second quarter of 2017.

The company plans to move the products manufactured at Azuza facility to other plants. The announcement of closure has come much in advance to provide employees enough time to look for other alternatives.

During the transition phase, the company is not expecting any disruptions to the supply of products. The Ripon facility employs 60 people and manufactures private label sugar wafer cookies for grocery retailers.

After reviewing several options, the company has decided to stop manufacture of its sugar wafer products due to slowing demand.

The full closure of the Ripon facility and discontinuation of production at the facility is slated to happen in the fourth quarter of 2016.

The two facilities being closed were part of the company's acquisition of ConAgra Foods private brands business, which it took over in February 2016. For redundant employees, the company has promised to provide severance benefits, transitional support and outplacement services.

The total cost to close the Azusa and Ripon facilities is expected to be around $170m.