Greencore’s expansion in the US is continuing apace with plans to open a new sandwich-making facility.
The own-label supplier said the new factory in Quonset, Rhode Island would allow it to serve existing customers in New England and develop new business around New York.
Once the 100,000 sq ft site is up and running, Greencore will close its existing factories in Newburyport and Brockton.
Greencore said moving to the new site would result in manufacturing process and distribution savings of £5m.
“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,” said Greencore CEO Patrick Coveney.
“Delivering this project will represent an important milestone as we continue to build a strong, growing, profitable food-to-go business in the USA.”
Greencore said the cost of building and fitting out the factory would total £20m and would be incurred over the next 15 months.
It said it would also recognise a non-cash impairment of assets of £8m in relation to the closure of the Newburyport and Brockton sites, as well as cash exit and start-up costs estimated at £3m.
Last month Greencore announced the acquisition of US food-to-go operator Lettieri’s, which is based in Shakopee, Minnesota. It also said it would invest £6m on new equipment at its Florida factory for making frozen food-to-go products that can be heated up for lunch or dinner.
Greencore said its sales in the US had risen 60% during the latest financial year ending 27 September and that the business had become profitable.
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