Leading North American frozen food company, High Liner Foods, has announced it will be consolidating its supply chain by closing two plants in Burin, Newfoundland and Danvers, Massachusetts.
This is apparently due to overcapacity at several plants and the acquisition of a more modern plant in Newport News, Virginia at the end of 2011.
Henry Demone, chief executive officer of High Liner Foods, said: “High Liner Foods has grown through three recent acquisitions, and many of High Liner’s plants are operating below capacity. High Liner Foods operates in a very competitive North American market with price-sensitive consumers, and we must be cost-efficient to remain competitive. Despite our growth, the reality is that we only need four North American plants to supply our customers.”
On the website, the company states that it recognises it will be a difficult time for more than 300 employees and their families because of job losses.
The Burin plant is scheduled to close by the end of December 2012, Danvers will remain open until the first quarter of 2013.
The annual ongoing pre-tax reduction in operating costs resulting from the consolidation, once all of the affected plants are closed, is estimated to be around US$9.6m.
