US jam and jelly maker JM Smucker has said it is to cut 335 full-time jobs, close three plants and take US$18m in charges in a bid to cut costs and reduce its involvement in fruit processing.
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Smucker is also trying to centralise production and distribution of its Uncrustables frozen crustless peanut butter and jam sandwiches line. The company also plans to reduce its overall product line by a third, but the products to be eliminated contribute less than 2% to total sales.
As from fiscal 2006, the restructuring moves are expected to save Smucker US$10m each year on a pre-tax basis, reported Reuters.
The three plants to be closed are situated in Watsonville, California; Woodburn, Oregon; and West Fargo, North Dakota. They will be closed in the next 18 months.
By the end of Autumn 2003, Smucker plans to have permanently halted fresh fruit processing at its Watsonville and Woodburn plants. The Woodburn plant will continue to produce fruit concentrate before being closed in early 2004.
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By GlobalDataSmucker plans to create around 150 new jobs at a Scottsville, Kentucky facility, resulting in a net loss of 7% of the company’s workforce.
The company’s Watsonville facility will continue to produce Uncrustables until spring 2004, while the West Fargo plant will make the product until summer 2004.
