US pasta producer American Italian Pasta Company has announced it will suspend operations at its Kenosha, Wisconsin facility in mid-July for the foreseeable future.
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The move comes as part of a campaign to restructure operations and better align productive capacity, the company said. A number of positions will also be reduced in other production facilities and corporate offices, leaving overall staff headcount down 14%.
Inventory levels will also be significantly reduced by halting production in Excelsior Springs, Missouri for four weeks in July and in Columbia, South Carolina for a period of seven to ten days in July, the company said in a news release.
AIPC stated that the functionality of the Kenosha facility would be maintained to allow for a quick reactivation of that capacity in the future.
The company added that its plans would require “a significant investment over the balance of the fiscal year currently estimated as a charge of US$10-12m before tax, but that annualised future savings were expected to exceed $12m before tax.
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