OFFICIAL PRESS RELEASE
Del Monte Pacific Limited announced its intention to move to an asset-light strategy and divest production facilities of U.S. subsidiary Del Monte Foods.
Facilities to be closed are located at Sleepy Eye, Minnesota and Mendota, Illinois. Production will cease at these facilities at the end of the current pack season. In addition, Del Monte’s Cambria, Wisconsin facility will be sold as an operating facility after completion of pack. 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.
Production at these locations will be primarily transitioned to other Del Monte production facilities in the United States. These facility closures offer Del Monte the ability to fully utilize the capacity of its existing production facilities and increase its focus on branded growth and innovation.
“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,” said Joselito D. Campos, Jr., Managing Director and CEO, Del Monte Pacific Limited. “We are committed to doing all we can to provide the affected employees with resources and support.”
[Del Monte Pacific Limited is dual listed on the Mainboards of the Singapore Exchange Securities Trading Limited and the Philippine Stock Exchange, Inc.]
Problems Viewing…CLICK HERE>>>
Del Monte closes Sleepy Eye plant; will lay off all workers
PROVIDED BY DEL MONTE
The California-based company on Tuesday notified the Minnesota Department of Employment and Economic Development that it plans to permanently shutter the 89-year old plant at the end of this year’s harvest and packing season.
The closure, which is slated to take place on or around Oct. 21, will result in the loss of 69 full-time jobs and 294 seasonal positions. Layoffs will began as soon as Oct. 2 and will be staggered through next June as the plant finishes any remaining labeling, shipping and administrative work needed to close.
When running at full capacity during the summer processing season, the plant can employ up to 400 seasonal workers.
The workers are not represented by a union and so bumping rights do not apply. DEED is still assessing the layoffs.