OAK BROOK, ILL. — TreeHouse Foods plans to close its manufacturing plant in the City of Industry., Calif., that produces branded liquid non-dairy creamer and refrigerated dressings. Production will be moved to other plants, according to the company.
Costs to close the plant are expected to be approximately $11.9 million, or 17c per fully diluted share, of which approximately $7.7 million, or 11c per share, is expected to be in cash. Components of the charges include non-cash asset write-offs of approximately $3.7 million, employee-related costs of approximately $2.8 million and other closing costs of approximately $5.4 million.
The company expects approximately $1.1 million of the charges to be incurred in the fourth quarter of this year and approximately $2.1 million, $4.9 million and $3.8 million in the first, second and third quarters of 2016, respectively. Ongoing annual cost savings from the closing are expected to be approximately $1 million.
The plant was operated within TreeHouse’s Bay Valley Foods business unit and employs 62.
