Greencore invests in US production

Greencore invests in US production

Greencore is investing in a new sandwich manufacturing facility to serve the north-east of the US, a move that will see production end at two other sites.

The company is spending GBP20m (US$33.1m) on the new site, to be located in Quonset in Rhode Island.

The company will transfer production from its two existing facilities in Massachusetts, with production at these locations to be phased out between April and September next year.

Greencore said the Quonset facility was "strategically located" to serve existing New England markets and expand into new markets "closer to New York". The 100,000 square foot facility will have "sufficient capacity" to support ongoing growth, the Ireland-based food firm indicated.

CEO Patrick Coveney said: "This investment will significantly enhance our capability and capacity to serve the sandwich market in the north-eastern region of the US, and will also enable us to drive further growth with current customers."

Scheduled to open in spring next year, 370 people will initially be employed at the site.

Greencore stressed that it has offered workers at the Massachusetts facilities new positions at the Rhode Island plant. However, it did not reveal how many jobs would be lost as a consequence of the move.

The company will register impairment costs of GBP8m as well as cash exit and start-up costs estimated at GBP3m.