Greencore Group plc (“Greencore”, the “Group”) today announces that it is to build a greenfield sandwich manufacturing facility in Quonset, Rhode Island, USA.
The new facility will be strategically located to enable Greencore USA both to service its existing markets in New England and also to develop future business opportunities closer to New York. As a result of the project, the Group will close its existing facilities in Newburyport and Brockton, Massachusetts on a phased basis between April and September 2015. Employees will be offered the opportunity to take up roles at the new facility.
The site will be over 100,000 square feet with a modular design that will enable future expansion, and will be built to the highest standards of hygiene, efficiency and process capability. It will have sufficient capacity to support ongoing growth and will also result in material manufacturing process and distribution savings estimated at £5m.
The new site will employ 370 people when it opens in the Spring of 2015.
The cost of construction and fit-out of the new facility is estimated at £20m and will be incurred over the next 15 months. The Group will also recognise a non-cash impairment of assets in FY14 of £8m in relation to the exit from the Newburyport and Brockton sites, as well as cash exit and start-up costs estimated at £3m. These costs will be reported as exceptional items.
Commenting on the investment, Patrick Coveney, Chief Executive Officer of Greencore, said:
“We are delighted to announce the development of a new food to go facility in Rhode Island. This investment will significantly enhance our capability and capacity to serve the sandwich market in the North Eastern region of the US, and will also enable us to drive further growth with current customers. Delivering this project will represent an important milestone as we continue to build a strong, growing, profitable food to go business in the USA.”
