US food group JM Smucker is revamping its supply chain and manufacturing network with a series of moves that include the closure of four plants.
Smucker plans to close fruit spreads facilities in Tennessee and in the Canadian province of Quebec.
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The owner of the Folgers coffee brand also plans to shutter coffee plants in Texas in 2011 and in Missouri in 2012. Smucker’s coffee production will be consolidated at a plant in New Orleans.
The closures, which could lead to the loss of around 700 jobs, will leave Smucker with 18 manufacturing plants in North America.
“We are confident that this strategic decision is important for the long-term growth of the company,” said Tim Smucker, the company’s chairman and co-CEO. “However, it was difficult given the effect on employees, their families, and the communities related to the impacted facilities.”
However, Smucker is building a manufacturing plant in Ohio, where it will produce fruit spreads, ice cream toppings and syrups. THe site is scheduled to begin production in 2013 when the Tennessee and Quebec will be closed.
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By GlobalDataRichard Smucker, the company’s executive chairman and other co-CEO, said the business would benefit from the revamp.
“The significant investment we are making in our coffee and fruit spreads businesses will help us achieve our long-term financial objectives, strengthen our category leadership positions, and enable us to deliver even greater value to our consumers, customers, and shareholders,” Smucker said.
