10 January 2006 12:28 [Source: ICIS news]
LONDON (ICIS news)--Givaudan is to close two of its US production sites at a cost of SF22m ($17m/Euro14m), the Swiss fine chemicals company said on Tuesday.
Activities at its New Milford, Connecticut and Oconomowoc, Wisconsin sites will be transferred to plants at Cincinnati, Ohio and Devon, Kentucky, said Givaudan.
The plant closures and capacity transfers, which will affect a total of 130 jobs, are due to be completed by mid 2007.
Givaudan, one of the world's largest flavour and fragrances producers, said it will incur one-time costs of SF22m, of which SF16m from asset impairment will impact the 2005 results.
The plant closures are part of Givaudan's consolidation of its flavour production facilities and the streamlining of its savoury product portfolio.
Givaudan said the closure of the New Milton plant reflected its decision to discontinue businesses with commodity type savoury base notes. A spokesman for Givaudan explained that much of the New Milton production was savoury base notes.
About one-third of Givaudan's global flavour sales of SF1.6bn ($783m/Euro648m) are generated in North America. Last year, commodity type savoury base notes accounted for sales of around SF45m.
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