Snacks company Utz said Thursday that it will close a plant in West Michigan as part of an “ongoing supply chain transformation.”
The company expects to begin the “transition” from eight main manufacturing facilities down to seven this month; the Grand Rapids plant is expected to close by early next year.
An Utz spokesperson told MLive that the facility employs 75 people. Those workers, the company said, will be “encouraged to apply” for spots at other company facilities, and those who cannot relocate will be provided “transition assistance.”
“While these types of decisions are never easy, they are necessary steps to streamline our operations and strengthen our supply chain for the long-term,” Utz CEO Howard Friedman said in a statement. “We are deeply grateful for the contributions of our Grand Rapids team and are committed to supporting them through this transition.”
Utz said that the closure would allow it to allocate more volume to larger, more efficient facilities. It is also expected to save costs in the second half of this year. The company previously set a goal roughly 6% “productivity savings” as a percentage of its adjusted cost of goods sold.
Utz announced the closure as part of its second-quarter earnings disclosure. The company said net sales were up nearly 3% year-over-year, but net income slipped by more than 60% over that span.
