Del Monte closing down several US plants to lower operation cost
Food and beverage giant Del Monte Pacific Ltd. is either shutting down or selling some of the production facilities owned by its US unit, Del Monte Foods, in a bid to reduce its operation cost.
In a disclosure to the Singapore bourse, which was cited in a Manila Bulletin report, the company said it is closing down its facilities located in Sleepy Eye, Minnesota and Mendota, Illinois.
“This decision has been difficult and has come after careful consideration.
This restructuring is a necessary step for us to remain competitive in a rapidly changing marketplace. Our asset-light strategy will lead to more efficient and lower-cost operations,” Del Monte managing director Joselito D. Campos Jr. said in the filing.
Production at the aforementioned facilities will cease at the end of the current pack season. In addition, Del Monte’s Cambria, Wisconsin facility will be sold as an operating facility.
The company will also be selling manufacturing assets at its Crystal City, Texas facility and intends to transfer production at this site to outside locations later this year.
Del Monte said these facility closures will offer its unit the ability to fully utilize the capacity of its existing production facilities and increase its focus on brand growth and innovation.