US snacks manufacturer Utz Brands has announced the permanent closure of its manufacturing site in Alabama.
The facility, located in Birmingham, is set to close on 3 July and around 175 employees will be affected. The remaining circa 100 employees will continue to be employed by Utz Brands, working in its distribution centre in the same city.
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Crisps brand Golden Flake was manufactured at the facility and will now be produced at other Utz production sites.
The group said that this decision reflects its “dedication to network optimisation and cost containment.”
Pre-tax cash charges of between $3m and $5m were forecast to be incurred by Utz from the closure of the Birmingham site. The Pennsylvania-based business said it also expects to incur pre-tax cash charges of $1.5m in severance expenses and between $1.5m to $3.5m in closing and transfer of production costs.
Utz also predicted that it would incur non-cash charges of approximately $8.5m to $11m in asset impairments.
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By GlobalDataUtz acquired the manufacturing site when it bought Golden Enterprises in 2016, gaining the Golden Flake brand in the deal.
Last month, the snack maker suggested that it will be selective when looking to make further price hikes as shoppers appear to become more resistant to increases. Last year, the group pushed through a number of price rises as it tried to counter inflationary pressures in its supply chain.
