Last edited 3:35 p.m., March 1, 2011Bay Valley Foods, a division of Oak Brook, Ill.-based TreeHouse Foods Inc. (NYSE: THS), on March 1 announced it would close its Springfield pickle plant by December.
The plant, which employs 46 workers, also operates under the name Bay Valley Foods. The company leases the building at 2848 N. Le Compte Road from Bell-Carter Foods, said Ron Bottrell, public relations liaison for Bay Valley Foods.
The facility, located near Partnership Industrial Center, produces pickles and relishes for restaurants and chain stores. The plant formerly was operated by J.L. DeGraffenreid & Sons LLC, according to
Springfield Business Journal archives.
"The decision to close the Springfield plant was a difficult one because of the impact it will have on our employees and their families," Brian Demos, TreeHouse senior vice president of operations, said in a news release. "The employees have demonstrated exceptional loyalty and dedication through the years."
Transition benefits and outplacement support will be provided to employees, according to the release.
"There are other nonrefrigerated pickle processing plants that Bay Valley operates in Wisconsin, Indiana and North Carolina," Bottrell said. "They certainly could apply there and presumably any other positions that become available at other Bay Valley facilities."
Most plant production is scheduled to stop in August, while plant closure is slated to occur by December. Demos said lackluster distribution attributed to the closing plans.
"A recent analysis of overall pickle production capacity and plant efficiency led us to this difficult decision," he said in the release. "The balance of the volume will be transferred to other Bay Valley Foods locations."
Until operations are shut down, the company isn't expecting any supply disruptions.
As a result of the closure, nonrecurring, pretax charges of approximately $5 million, or 9 cents per share, will be added to TreeHouse's operating income. The company expects to save approximately $2 million a year by closing the plant, the release said.
TreeHouse Foods is the holding company for three other subsidiaries: E.D. Smith, Sturm Foods and S.T. Specialty Foods. Bay Valley Foods facilities produces other foods, including syrups, sauces, soup, salsa and salad dressings, in several states, according to its
Web site.
TreeHouse Foods Inc. shares were trading at $51.74 as of 10 p.m., compared to a 52-week range of $39.63 to $53.30.[[In-content Ad]]
