Ingredion consolidating Brazilian manufacturing plants

Ingredion Incorporated recently shared plans to consolidate its Brazilian manufacturing facilities by closing plants in Trombudo Central and Conchal, and transferring their operations to plants in Balsa Nova and Mogi Guaçu.

The consolidation will begin early next year and should be complete by the end of 2016. It is expected to result in annual cost savings of $6 million to $8 million beginning in 2017.

"The slowing economy recently has impacted volumes in Brazil,” Ingredion Chief Financial Officer Jack Fortnum said. “However, our continuous improvement programs continue to drive good operational efficiencies. We will remain vigilant in our efforts to maximize productivity and enhance shareholder value."

An ingredient solutions provider specializing in offering nature-based sweeteners, starches and nutrition ingredients to a number of diversified industries, Ingredion officials expressed regret at the job loss for the Trombudo Central and Conchal regions but pointed out the overall benefit this move has for the continued success of the firm’s operations in the country as a whole.

"We continuously evaluate our manufacturing network for improvement opportunities,” Ingredion South America President Ricardo Souza said. “Consolidating production into Balsa Nova and Mogi Guaçu is part of our overall restructuring program in our Brazilian operations to reduce costs in our network."

The firm will continue its current operations in Cabo de Santo Agostinho and São Gonçalo as normal, in addition to the previously mentioned Balsa Nova and Mogi Guaçu operations.