Campbell Announces Bi-Coastal Plant Closings
09/27/2012 – Camden, N.J. – Campbell Soup Company (NYSE: CPB) today announced steps to improve its U.S. supply chain cost structure indicating that they have excess capacity in Campbell's U.S. thermal manufacturing network. Campbell Soup suggests the excess capacity is due to a number of factors including significant productivity improvements, volume declines of U.S. canned soup and an increased focus on new packaging formats which are often produced under co-manufacturing agreements.
As a result, the company is closing the following plants disrupting the careers of over 700 employees.
Sacramento, California Soup/Beverage Plant. The Sacramento plant currently produces soups, sauces and beverages. It was built in 1947 and is the oldest in Campbell's U.S. network and has the highest production costs on a per-case basis. The plant has approximately 700 full-time employees. Campbell will close the facility in phases, with plans to cease operations by July 2013. The company plans to shift the majority of Sacramento's production of soups, sauces and beverages to its remaining three thermal plants in Maxton, N.C.; Napoleon, Ohio; and Paris, Texas.
South Plainfield, New Jersey Spice Plant. Campbell currently operates two spice plants that supply ingredients to its U.S. thermal plants. Opened in 1964, the South Plainfield plant employs 27 people. The company will close the facility by March 2013. Campbell will consolidate spice production at its larger Milwaukee plant.
Mark Alexander, President, Campbell North America, said, "We recognize this is difficult news for employees in Sacramento and South Plainfield. Campbell is committed to helping them work through this transition. As we position Campbell for profitable growth, we must continue to optimize our U.S. plant network and diversify our manufacturing capabilities. We expect the steps we're announcing today to improve our competitiveness and performance by increasing our asset utilization, lowering our total delivered costs and enhancing the flexibility of our manufacturing network. These actions also will eliminate the capital investments needed to maintain the Sacramento plant."
Campbell anticipates that it will incur pre-tax costs of approximately $115 million, most of which will be incurred in fiscal 2013. The program will also require approximately $27 million of capital spending. Campbell expects these actions, once fully implemented, will result in annual ongoing pre-tax savings of approximately $30 million beginning in fiscal 2016, with fiscal 2014 savings of approximately $21 million. Details on the program will be provided in Campbell's 2012 Annual Report on Form 10-K, which will be filed with the Securities and Exchange Commission later today.
Campbell currently employs approximately 19,900 people around the world. After the plant closures, Campbell will continue to employer approximately 2,100 in California and 1,640 people in New Jersey. Camden, New Jersey is home to the company’s headquarters.
- Blue Diamond Opens Turlock Plant Nearly 300 direct and indirect jobs are expected to be created from Blue Diamond's Turlock plant.
- Cargill to Acquire Northstar Grain Company Cargill plans $3 million in upgrades to the Northstar Grain facility once the purchase is completed.
- Baskin-Robbins Launches Major Development Incentives For 2013 Baskin-Robbins is offering both franchise incentives and new store designs to attract new franchisees and develop existing relationships.
For Email Marketing you can trust