JM Smucker to close plants in Ontario, cut jobs

By IBTimes Staff Reporter | September 29 2010 12:19 PM

J.M. Smucker Co, the maker of Jif peanut butter and Folgers coffee, said it would shut down two of its facilities in Ontario, cutting about 150 jobs, as it continues efforts to control costs and improve profit.

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The company's plant in Dunnville and its pickle tank farm in Delhi Township will close after production is transitioned at the end of 2011, Smucker said in a filing with the U.S. Securities and Exchange Commission.

Production will be shifted to third-party manufacturers in the U.S. and to the company's existing manufacturing facility in Ripon, Wisconsin over the next 12-15 months, it said.

Smucker, which competes with Kraft's Maxwell House and Yuban, now sees restructuring and merger costs of 65-70 cents a share for fiscal 2011, up from its prior view of 55-60 cents a share.

The company expects to incur charges of about $45 million over a two-year fiscal period due to the actions and sees annual savings of about $8 million, excluding one-time costs, beginning in fiscal 2013.

In March, Orrville, Ohio-based Smucker said it would cut about 700 jobs, or 15 percent of its workforce, and reduce manufacturing facilities in North America to 18 from 22.

Shares of the company, which have gained about 15 percent in value in the last 12 months, were marginally down at $60.87 in afternoon trade on the New York Stock Exchange. (Reporting by Renju Jose in Bangalore; Editing by Vyas Mohan)