US soups, sauces and snacks heavyweight Campbell Soup Co. is to close a domestic manufacturing plant and reduce another in size.
Some 415 jobs will be impacted as a result.
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The canned meatballs manufacturer said in a statement today (28 May) that it will shutter its Tualatin, Oregon, facility while its Jeffersonville, Indiana, site will be scaled down.
Campbell said the plans are “part of an ongoing effort to invest in and transform its supply chain to fuel business growth, improve return on invested capital and enhance the overall effectiveness and efficiency of its manufacturing and distribution network”.
The Tualatin plant, acquired in 2017 as part of Campbell’s purchase of Pacific Foods, produces Pacific’s organic soup, broth and plant-based beverages. The site consists of multiple leased buildings of approximately 250,000 square feet.
Campbell said: “The aging facility and inefficient nature of the site’s configuration can no longer support the increased consumer demand and continued growth of the business.”
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By GlobalDataIt will close the facility in phases and expects to cease operations by July 2026, with the first phase to impact 120 of its 330 employees in August this year. The company plans to move the plant’s soup and broth production to other plants in its network and shift plant-based beverage production to “leading co-manufacturing partners”.
The Jeffersonville plant will specialise in tortilla chips in the future, while production of crisps will be moved to Campbell’s Charlotte and Hanover plants. The change will come into effect in July and will impact approximately 85 of the 230 employees there.
Campbell said that, in total, the closure of the Tualatin site and the changes to the Jeffersonville plant will impact 415 employees.
Dan Poland, Campbell’s chief supply chain officer, said: “We recognise this is difficult news for our teams in Tualatin and Jeffersonville. Any action that impacts our people is made with careful deliberation, and we are committed to provide support and assistance during these changes.”
Campbell suggested the actions announced today are “another significant step in transforming Campbell’s supply chain into a competitive advantage” saying it is “closing inefficient sites and shifting production to more modern and effective plants”.
Poland added: “To fuel growth and transform our manufacturing and distribution network, we must invest and further strengthen our supply chain.
“By leveraging our best-in-class in-house capabilities combined with the expertise of trusted manufacturing partners, we will continue to make the highest quality products, with a more agile, flexible, and cost-effective manufacturing network.
“We continue to evaluate optimisation opportunities across the network to build our supply chain of the future.”
Meanwhile, the company said it plans to invest $230m in network-wide projects to “drive best-in-class manufacturing capabilities and leverage leading co-manufacturing partners”.
This total includes an $150m investment for new aseptic soup production
at its Maxton, North Carolina, facility, a $72m investment in its Hanover, Pennsylvania, plant and investment of $8m in its facility at Franklin, Wisconsin. Some 212 jobs will be created across the three sites.
In addition to these investments, the company previously announced plans to expand production of Goldfish crackers at its Richmond, Utah plant. The new line, which is expected to be operational by the end of calendar year 2024, will increase the bakery’s output of Goldfish by 50% and will add approximately 80 new jobs at the site.
In March, Campbell Soup Co. said it is expecting volumes to improve this year as consumer confidence brightens.
Reporting its second-quarter results on 6 March, it revealed volumes had declined 2% year-on-year.
