Del Monte Pacific Limited has announced its intention to move to an asset-light strategy and divest production facilities of U.S. subsidiary Del Monte Foods.
Facilities to be closed are located at Sleepy Eye, Minnesota and Mendota, Illinois. Production will cease at these facilities at the end of the current pack season. In addition, Del Monte's Cambria, Wisconsin facility will be sold as an operating facility after completion of pack. The company will also be selling manufacturing assets at its Crystal City, Texas facility and intends to transfer production at this site to outside locations later this year.
Production at these locations will be primarily transitioned to other Del Monte production facilities in the United States. These facility closures offer Del Monte the ability to fully utilize the capacity of its existing production facilities and increase its focus on branded growth and innovation.
"This decision has been difficult and has come after careful consideration. This restructuring is a necessary step for us to remain competitive in a rapidly changing marketplace. ," said Joselito D. Campos, Jr., Managing Director and CEO, Del Monte Pacific Limited. "We are committed to doing all we can to provide the affected employees with resources and support."
