Campbell Soup Company has set out steps to improve its US supply chain cost structure and increase asset utilisation across its US thermal plant network.
It said that a number of factors have resulted in excess capacity in its US thermal manufacturing network, including significant productivity improvements, volume declines of US canned soup and an increased focus on new packaging formats which are often produced under co-manufacturing agreements.
Closing the Sacramento, California plant, which currently produces soups, sauces and beverages. The company plans to shift the majority of Sacramento’s production of soups, sauces and beverages to its remaining three thermal plants in Maxton, N.C.; Napoleon, Ohio; and Paris, Texas.
Closing the South Plainfield, NJ, spice plant. Campbell will consolidate spice production at its larger Milwaukee plant.
Mark Alexander, president of Campbell North America, said: “We expect the steps we’re announcing today to improve our competitiveness and performance by increasing our asset utilisation, lowering our total delivered costs and enhancing the flexibility of our manufacturing network.”