TreeHouse Foods announced plans on Wednesday to close two of their facilities, bay Valley Foods in Plymouth and another plant in Brooklyn Park, Minnesota.
A company issued news release states, “The decisions are part of TreeHouse 2020, the Company’s broad base restructuring plan to improve its competitive position and operating margin structure through a comprehensive program of category and customer portfolio management as well as manufacturing and supply chain optimization.”
The Plymouth facility on Western Avenue employs approximately 150 employees and produces banana peppers, jalapenos, pickles and pickle relish. Production is expected to cease by the end of the year.
Sam K. Reed, Chairman and CEO of TreeHouse said, “The decisions to close these facilities are difficult ones given their impact on families and communities.” He continued, “However, despite the toll they exact, these measures are required if we are to remain competitive in a rapidly changing marketplace, we must not only produce the finest quality at the lowest costs, but also fully utilize the capacity of our plants and the capability of our people in doing so.”
The company will provide outplacement support to employees whose positions are being eliminated.
Total costs related to the announced facility closures are expected to be approximately $44.5 million.
