Campbell Soup Co. is taking steps to improve its U.S. supply chain cost structure and increase asset utilization across its U.S. thermal plant network.
A number of factors have resulted in excess capacity in Campbell's U.S. thermal manufacturing network, including significant productivity improvements, volume declines of U.S. canned soup and an increased focus on new packaging formats which are often produced under co-manufacturing agreements. As a result, the company is taking the following actions.
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It will close its 1.3 million-square-foot Sacramento, CA, plant at 6200 Franklin Blvd., which currently produces soups, sauces and beverages. Built in 1947, the Sacramento plant is the oldest in Campbell's U.S. network and has the highest production costs on a per-case basis.
The plant has approximately 700 full-time employees. Campbell will close the facility in phases, with plans to cease operations by July 2013. The company plans to shift the majority of Sacramento's production of soups, sauces and beverages to its remaining three thermal plants in Maxton, NC; Napoleon, OH; and Paris, TX.
It will close its 58,000-square-foot South Plainfield, NJ, spice plant at 3500 County Road 663. Campbell currently operates two spice plants that supply ingredients to its U.S. thermal plants. Opened in 1964, the South Plainfield plant employs 27 people. The company will close the facility by March 2013. Campbell will consolidate spice production at its larger Milwaukee plant.
Campbell anticipates that it will incur pre-tax costs of approximately $115 million, most of which will be incurred in fiscal 2013. The program will also require approximately $27 million of capital spending. Campbell expects these actions, once fully implemented, will result in annual ongoing pre-tax savings of approximately $30 million beginning in fiscal 2016, with fiscal 2014 savings of approximately $21 million.
Hallmark Cards Consolidating Manufacturing Operations
Hallmark Cards Inc. plans to consolidate its Kansas manufacturing operations.
Greeting card and envelope production will move from the company's Topeka production center to its manufacturing facility in Lawrence. And, production of specialty items such as stickers, ribbon and bows will transfer from the Lawrence production center to Hallmark's facility in Leavenworth.
As a result of this move, the Topeka Production Center will close by the end of 2013 and 300 workers will be let go.
"The work we are now doing in three facilities can be accomplished in two," said Donald J. Hall, Jr., Hallmark president and CEO. "This decision allows us to streamline our operations and improve our cost structure so we can remain competitive in today's marketplace."
The Topeka production center first opened in 1943. The current facility, completed in 1966 at 240 S.E. Madison, occupies 711,000 square feet and employs approximately 500 people.
Closures & Layoffs
Sheet1 | | | | | |
. | Company | Address | Closure or Layoff | No. of Workers Impacted | Impact Date |
. | Ansell Hawkeye | 2101 Wall St. Extension, Beardstown, IL | Closure | 51 | 10/15/2012 |
. | ARAMARK Correctional Services | 2700 S. California Ave., Chicago, IL | Closure | 60 | 9/8/2012 |
. | State Farm | 100 Lanter Court, Suite 8, Collinsville, IL | Closure | 70 | 1/13/2013 |
. | J.C. Whitney | 761 Progress Parkway, LaSalle, IL | Layoff | 68 | 10/14/2012 |
. | Motorola Mobility | 600 N. U.S. Highway 45, Libertyville, IL | Layoff | 659 | 8/31/2012 |
. | Good Samaritan Regional Health Center | 605 N. 12th St., Mt. Vernon, IL | Closure | 78 | 10/15/2012 |
. | ThyssenKrupp Manufacturing | 509 Front St., Roanoke, IL | Closure | 103 | 11/30/2012 |
. | State Farm | 8505 W. 183rd St., Suites 100/200, Tinley Park, IL | Closure | 59 | 1/31/2013 |
. | V-S Industries | 900 S. Chaddick Drive, Wheeling, IL | Closure | 72 | 9/30/2012 |
. | Washington Demilitarization Co. | 78068 Ordnance Road, Hermiston, OR | Closure | 34 | 11/8/2012 |
. | Conservative Service Group | 208 SW 5th Ave., Portland, OR | Layoff | 97 | 12/16/2012 |
. | Capital One Financial | 12447 SW 69th Ave., Portland, OR | Layoff | 217 | 1/2/2012 |
. | Warm Springs Forest Products Industries | 3270 Highway 26, Warm Springs, OR | Layoff | 93 | 11/16/2012 |
. | URS Federal Services | , Oak Harbor, WA | Layoff | 236 | 10/31/2012 |
. | Dendreon Corp. | 1301 2nd Ave., Suite 3200, Seattle, WA | Layoff | 145 | 11/20/2012 |
. | McDonald's Express | 1025 Lake St., Algoma, WI | Closure | 33 | 11/16/2012 |
. | BMO Harris Bank | W57 N14280 Doerr Way, Cedarburg, WI | Layoff | 37 | Immediately |
. | Community Health Partnership | 475 Chippewa Mall Drive, Suite 418, Chippewa Falls, WI | Closure | 79 | 12/31/2012 |
. | Community Health Partnership | 2240 EastRidge Center, Eau Claire, WI | Closure | 79 | 12/31/2012 |
. | Community Health Partnership | 3120 Sclineider Ave., Suite 3, Menomonie, WI | Closure | 79 | 12/31/2012 |
. | Community Health Partnership | 186 County Road U, Suite 100, River Falls, WI | Closure | 79 | 12/31/2012 |
. | BMO Harris Bank | 150 Communications Drive, Sun Prairie, WI | Layoff | 37 | Immediately |
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