Dutch food and drink giant Wessanen is to close one of its beverage production plants in Casa Grande, Arizona, USA. Production activities at the Casa Grande plant, which is part of Wessanen's US subsidiary American Beverage Corporation (ABC), will be integrated into other ABC facilities.
The executive board of Koninklijke Wessanen stated that the move was designed to improve the firm's performance in North America.
Casa Grande produces various beverages and fruit juices, which are being distributed to over 1,300 supermarkets in the western part of the United States. Integration of these activities into other ABC facilities, which will be finalised by year end 2003, will, the company believes, reduce production costs and improve efficiency.
The closing of the plant will result in a workforce reduction of 50 positions.
The closing of ABC's Casa Grande production facility is part of Operation Phoenix, which was launched on 27 August 2003. This extensive programme, involving improvement measures across the whole organisation, should result in annual savings of more than €100 million, which will partly be reinvested in growth initiatives.