Campbell Soup Company CPB announced today that it has entered into
commercial arrangements with Grupo Jumex and Conservas La Costeña that will
expand the company's access to manufacturing and distribution capabilities in
Mexico for its beverages, soups, broths and sauces.
Currently, Campbell employs approximately 330 people in Mexico. As a result of
entering into these agreements, Campbell will close its plant in Villagrán,
Mexico, and eliminate approximately 260 positions. The company plans to retain
approximately 70 positions in R&D, sales, supply chain, marketing and general
management. Production from the Villagrán facility will be transitioned to
Grupo Jumex and Conservas La Costeña facilities in phases through September
2013. Campbell anticipates that it will record a restructuring charge of $9
million ($6 million after tax) related to this initiative, most of which will
be incurred in the second quarter of fiscal 2013.
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