Blue Diamond Growers, a cooperative of almond growers in the US, is to shut and sell its plant in midtown Sacramento, California.
In a bid to “streamline” operations, the group said it will move “most” of its manufacturing operations at the over 50-acre facility to its sites in Turlock and Salida, California.
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Blue Diamond Growers added that the relocation positions its processing operations closer to many of its farmer-owners and “enhances its footprint in the region”.
“The challenges of running a plant from these historical buildings has become too costly and inefficient,” said Kai Bockmann, president and CEO of Blue Diamond Growers. “Streamlining our manufacturing plants is the right business move to further strengthen our market-leading position and bring increased value to our grower members.”
The transition will start later this year, with approximately 10% of plant employees exiting initially, Bockmann added.
The full process will take place in phases over the next 18 to 24 months, with roughly 600 people being affected by the closure.
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By GlobalDataBockmann said: “Even though most employees will not leave this year, we want to be transparent and tell our people as soon as possible. We are committed to putting in the energy, time and resources to help our impacted team members.”
Set up in 1910, Blue Diamond Growers represents nearly 3,000 of California’s almond growers and employs around 1,400 people across its processing plants.
Blue Diamond said it would offer incentives for employees to stay during the transition, alongside severance and outplacement services for the impacted positions.
Some team members will also be given the choice to work at other locations.
The group’s corporate office is expected to remain in Sacramento.
