700 Out of Work as Campbell's Announces Closure of Sacramento Plant
Campbell's Soup Company announced early Thursday morning that they would be closing their Sacramento plant, putting at least 700 full-time employees out of work.
A release issued by Campbell's on Thursday stated the following reasons for the closure:
"A number of factors have resulted in excess capacity in Campbell's U.S. thermal manufacturing network, including significant productivity improvements, volume declines of U.S. canned soup and an increased focus on new packaging formats which are often produced under co-manufacturing agreements. As a result, the company is taking the following actions:
• Closing the Sacramento, Calif., plant, which currently produces soups, sauces and beverages. Built in 1947, the Sacramento plant is the oldest in Campbell's U.S. network and has the highest production costs on a per-case basis. The plant has approximately 700 full-time employees. Campbell will close the facility in phases, with plans to cease operations by July 2013. 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, N.J., spice plant. Campbell currently operates two spice plants that supply ingredients to its U.S. thermal plants. Opened in 1964, the South Plainfield plant employs 27 people. The company will close the facility by March 2013. Campbell will consolidate spice production at its larger Milwaukee plant."
Campbell's stated they plan to employ approximately 2,100 people in California following the closure of the Sacramento plant.
In addition to Sacramento, Campbell's also has facilities in Dixon and Stockton.