Posted on March - 28 - 2010
J.M. Smucker plans big capital spending push, will close four plants
J.M. Smucker Co. (NYSE: SJM) has outlined a major capital investment initiative that will result in new production capacity, though the changes will come at a cost of 40% of the 450 jobs at the plant in its headquarters city of Orrville, Ohio.
The maker of Smucker’s jellies, Jif peanut butter and Folgers coffee said the investment in its operations will total $220 million over the next three years. In addition, the company plans to close four plants and will incur restructuring charges of $190 million over the course of the initiative.
Smucker said it will replace its existing plant in Orrville with a new plant that should begin production in the summer of 2012. Because of production enhancements at the new plant, Smucker said its plant work force in Orrville should be reduced by about 40%, or rougly 180 positions, over the next three years.
A Smucker spokeswoman said 130 workers would be eligible for a voluntary retirement proposal that will be forthcoming as the company looks to reduce the plant’s staff in phases, with the first phase occurring in December 2010, a second phase in 2012 and a third phase in 2013.
Besides the new plant in Orrville, Smucker plans to make investments in new equipment at its plant in Ripon, Wisc. The investments in those two plants should total $150 million.
Upon completion of the new plant in Orrville, production of the company’s fruit spreads, syrups and ice cream toppings for its consumer and foodservice businesses in the United States and Canada primarily will be concentrated in Orrville and Ripon. The company plans to close its fruit spread plants in Memphis, Tenn., and Ste. Marie, Quebec, as a result.
Similar Posts:
- J.M. Smucker to close its Memphis jelly and jam plant by summer 2013
- Ferro Corp. to close plant in Holland, take $13 million in charges
- J.M. Smucker sells Hungry Jack potato products to Basic American Foods
- Memphis-based Thomas & Betts may shift jobs from Iowa to Tennessee
- GE radiates confidence with plans for solar-panel plant in Aurora
