MENDOTA – Del Monte Pacific Limited announced its intention to move to an asset-light strategy and divest production facilities of U.S. subsidiary Del Monte Foods.
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MENDOTA – Del Monte Pacific Limited announced its intention to move to an asset-light strategy and divest production facilities of U.S. subsidiary Del Monte Foods.
Facilities to be closed are located in Mendota and in Sleepy Eye, Minn. Production will cease at these facilities at the end of the current pack season. Full closure of the Mendota plant is expected by June of 2020. In addition, Del Monte’s Cambria, Wis., facility will be sold as an operating facility after completion of pack. The company will also be selling manufacturing assets at its Crystal City, Texas facility and intends to transfer production at this site to outside locations later this year. Production at these locations will be primarily transitioned to other Del Monte production facilities in the United States.
These facility closures offer Del Monte the ability to fully utilize the capacity of its 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 D Campos Jr., Managing Director and CEO, Del Monte Pacific Limited. “We are committed to doing all we can to provide the affected employees with resources and support.”
Mendota city clerk Emily McConville said she and Mayor David Boelk only learned about the intended closure of the Mendota facility on Tuesday morning.
“We were totally blind-sided,” McConville said. “I am still processing the impact it is going to have on Mendota.
“Del Monte has played a vital role in Mendota's history and we are thankful for the 70 plus years. I can't help but feel devastated for the families that will be directly and indirectly affected.”
The Mendota facility was constructed in 1949 and spans 431 acres. Mendota’s fresh pack products include peas, peas & carrots, cream style corn, whole kernel corn, mixed vegetables, corn specialties and lima beans. Mendota also produces broth and dry beans outside of the fresh packing season. The workforce consists of 31 salaried and 106 regular hourly employees with a peak seasonal headcount of approximately 550 employees.
