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Del Monte To Close Two U.S. Production Facilities, Sell One

delmonte aug22 lt

Branded food and beverage company Del Monte Pacific Ltd. announced its plan to restructure production facilities of U.S. subsidiary Del Monte Foods to cut costs. The company will close two facilities resulting in hundreds of job cuts. It plans to divest one plant, while another one's manufacturing assets will be sold.

According to CEO Joselito Campos, Jr., the restructuring is a necessary step to remain competitive in a rapidly changing marketplace. With these steps, the company expects to fully utilize the capacity of its existing production facilities and increase its focus on branded growth and innovation.

In the U.S., Del Monte will close two production facilities located at Sleepy Eye, Minnesota and Mendota, Illinois at the end of the current pack season, which ends in late October. Further, the company plans to sell its Cambria, Wisconsin facility as an operating facility after completion of pack.

Del Monte will also sell manufacturing assets at its Crystal City, Texas facility, and the production at this site will be transferred to outside locations later this year.

The production at the affected locations will mainly be transitioned to other Del Monte production facilities in the country.

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