Del Monte Pacific Ltd., Singapore, announced its intent to move to an asset-light strategy and divest production facilities of U.S. subsidiary Del Monte Foods, San Francisco.
As part of this supply chain restructuring, Del Monte will close its Sleepy Eye, Minn., and Mendota, Ill., facilities at the end of the current pack season. Del Monte will also sell its Cambria, Wis., operating facility after completion of pack, and as well as manufacturing assets at its Crystal City, Texas, facility. Del Monte intends to transfer production from the Crystal City site to outside locations later this year.
These facility closures allow Del Monte to fully utilize the capacity of its existing production facilities and increase 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. Our asset-light strategy will lead to more efficient and lower cost operations," says Joselito Campos, Jr., managing director and CEO, Del Monte Pacific Ltd. "We are committed to doing all we can to provide the affected employees with resources and support."