Packaged food giant ConAgra Foods has announced plans to close two manufacturing plants and expand another as part of its plan to streamline manufacturing operations. Two hundred jobs will be lost, the company said yesterday (25 January).
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In March 2006, ConAgra Foods announced it would close 10 to 12 plants as part of its strategy to achieve sustainable, profitable growth by streamlining operations, cutting operating costs and raising gross margins. The company aims to cut US$100m in annual fixed costs by fiscal 2009.
ConAgra will close its microwave popcorn plant in Edina, Minnesota, by late April. Production will be transferred to facilities in Rensselaer, Indiana, and Irapuato, Mexico.
The company also announced plans to close the ConAgra Foods South St. Paul, Minnesota, plant, which produces popcorn balls. Production will be transferred to Lakeville, Minnesota, where the company will be able to expand this business to meet increasing consumer demand for this product.
Additionally, part of the bulk popcorn plant at Lake View, Iowa, will be closed and production cut by May.
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By GlobalData“To ensure the long-term growth of ConAgra Foods, we are committed to identifying and implementing business processes that will maximize our investments in the production, storage and transportation of our products and ingredients,” said Jim Hardy, executive vice president, Product Supply. “By realigning production in our Popcorn and Seeds platform, we have taken yet another important step toward achieving a more efficient business model and building a stronger manufacturing base for growth, innovation and continued success.”
Last September the company announced plans to close five plants and eliminate about 400 jobs.
