18th Mar 2014 12:15
LONDON (Alliance News) - Convenience food maker Greencore Group PLC Tuesday said it will build a new greenfield sandwich making facility in Quonset, Rhode Island in the US, a plant it will use to serve its existing markets in New England and also to develop "future business opportunities" closer to New York.
In a statement, the company said it will close its existing facilities in Newburyport and Brockton, Massachusetts on a phased basis between April and September 2015, with employees being given the chance to take a job at the new facility.
"It will have sufficient capacity to support ongoing growth and will also result in material manufacturing process and distribution savings estimated at GBP5 million," the company said in a statement.
Greencore estimates that the new plant will cost GBP20 million over the next 15 months to build and fit out. It will book impairments of GBP8 million in the current financial year for the closure of its Newburyport and Brockton sites, and cash exit and start-up costs of about GBP3 million.
"This investment will significantly enhance our capability and capacity to serve the sandwich market in the North Eastern region of the US, and will also enable us to drive further growth with current customers," Greencore Chief Executive Patrick Coveney said.
Greencore shares were up 0.3% at 267.6 pence midday Tuesday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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