Ingredion to close two plants in Brazil
Ingredion Incorporated, a global provider of ingredient solutions to diversified industries, announces that the plants in Trombudo Central and Conchal will be closed and production will be moved to plants in Balsa Nova and Mogi Guaçu, respectively.
The company says the action will lead to consolidation of its manufacturing network in Brazil.
The consolidation will begin early in 2016 and should be complete by the end of the year. It is expected to result in annual cost savings of USD 6 – 8 million USD beginning in 2017. Total pre-tax restructuring-related charges of USD 13 – 16 million USD are anticipated in the third quarter of 2015.
“We continuously evaluate our manufacturing network for improvement opportunities. Consolidating production into Balsa Nova and Mogi Guaçu is part of our overall restructuring program in our Brazilian operations to reduce costs in our network,” said Ricardo Souza, president, Ingredion South America.
Ingredion CFO, Jack Fortnum noted: “The slowing economy recently has impacted volumes in Brazil. However, our continuous improvement programs continue to drive good operational efficiencies. We will remain vigilant in our efforts to maximize productivity and enhance shareholder value.”
In addition to Balsa Nova and Mogi Guaçu, Ingredion will continue to operate facilities in Cabo de Santo Agostinho and São Gonçalo, Brazil.
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