Utz Brands, the US snack maker, has announced plans to rationalise its manufacturing network, including divesting a plant in Bluffton (IN), closing another in Hanover (PA), and listing for sale two further plants in Louisiana and Alabama.
The company said the move was intended to streamline its operating structure by consolidating volume into a smaller number of facilities.
In addition, Utz Brands said it had signed a built-to-suit agreement for a new circa 650,000 sq ft leased distribution centre in Hanover, which is expected to open in the first quarter of 2025.
Following these actions, the company said it would have 13 active plants, which includes the manufacturing facility in Kings Mountain (NC) purchased in April 2022.
The volume from the closed facilities is expected to be absorbed by the remaining plant network and should reduce fixed overhead and drive efficiencies in manufacturing conversion costs, Utz Brands added.
Source: Utz Brands