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TreeHouse Foods plans to close two facilities in US

Packaged foods and beverages manufacturer TreeHouse Foods is planning to close its facilities in Brooklyn Park, Minnesota, Plymouth, Indiana.

The company also announced its intention to remove non-peanut packaging operations from Dothan, Alabama facility.

The decisions are part of TreeHouse 2020, the company's restructuring plan to enhance its competitive position and operating margin structure via a program of category and customer portfolio management as well as manufacturing and supply chain optimization.

The Brooklyn Park facility, which employs about 90 people, manufactures boxed dinners and packaged side dishes. Production is anticipated to stop by the end of this year.

The Plymouth facility, which makes banana peppers, jalapeños, pickles and pickle relish, employs about 150 people. Production at this plant is also anticipated to stop by the end of this year.

Over 135 employees in the Dothan facility will be laid off over a 10 month period starting in November 2017.

Total costs associated to the announced facility closures are estimated to be about $44.5m, of which nearly $29.7m is expected to be in cash.

The company said components of the charges include non-cash asset write-offs of approximately $14.8m, employee-related costs of approximately $7m, and other closure costs of about $22.7m.

TreeHouse Foods CEO and chairman Sam Reed said: "The decisions to close these facilities are difficult ones given their impact on families and communities. However, despite the toll they exact, these measures are required if we are to remain competitive in a rapidly changing marketplace for packaged foods.

“In order to win in today's marketplace, we must not only produce the finest quality at the lowest costs, but also fully utilize the capacity of our plants and the capability of our people in doing so."