MANILA, Philippines–Campos family-led food and beverage conglomerate Del Monte Pacific Ltd. (DMPL) is set to shut down four of its American factories as part of US subsidiary Del Monte Foods’ shift to an “asset-light” business model.
In a disclosure to the Philippine Stock Exchange on Thursday, DMPL announced a plan to close the production facilities located at Sleepy Eye, Minnesota and Mendota, Illinois at the end of the current pack season.
In addition, Del Monte’s Cambria, Wisconsin facility will be sold as an operating facility after completion of pack. The company will also sell manufacturing assets at its Crystal City, Texas facility and intends to transfer production at this site to other locations later this year.
Production at these locations will be transferred to other Del Monte production facilities in the US. These facility closures are seen to offer Del Monte the ability to fully utilize the capacity of other existing production facilities and increase its focus on branded growth and innovation.
“This decision has been difficult and has come after careful consideration. This restructuring is a necessary step for us to remain competitive in a rapidly changing marketplace. Our asset-light strategy will lead to more efficient and lower cost operations,” said Joselito Campos Jr., DMPL managing director and chief executive officer.
“We are committed to doing all we can to provide the affected employees with resources and support.”