Del Monte Foods says it will close a south-central Minnesota vegetable processing plant, eliminating more than 360 full- and part-time jobs.
Del Monte announced the closing of the Sleepy Eye plant on Tuesday.
Opened in 1930, 69 full-time employees and 294 seasonal employees will lose their jobs at the end of the current packing season, according to a filing with the Minnesota Department of Employment and Economic Development. The plant, which cans peas and corn, is expected to completely wind down by June 2020.
Del Monte said it would also close a plant in Mendota, Ill., and sell another one in Cambria, Wis. “Manufacturing assets” in Crystal City, Texas, will also be sold. The California-based company said production will be transitioned to other Del Monte facilities in the United States.
According to the company’s announcement, which cited an “asset-light strategy,” the plant closures “offer Del Monte the ability to fully utilize the capacity of its existing production facilities and increase its focus on branded growth and innovation.”
Del Monte Foods is a subsidiary of Singapore-based Del Monte Pacific Ltd.
“This decision has been difficult and has come after careful consideration. This restructuring is a necessary step for us to remain competitive in a rapidly changing marketplace. Our asset-light strategy will lead to more efficient and lower cost operations,” Joselito D. Campos Jr., managing director and CEO of the parent firm, said in a statement. “We are committed to doing all we can to provide the affected employees with resources and support.”
Sleepy Eye Mayor Wayne Pelzel told KSTP-TV that the city of 3,600 residents 35 miles west of Mankato wasn’t given any notice about the closing, which he called “a terrible shock.” Just last weekend, the community celebrated its annual Buttered Corn Days festival.
Pelzel told KSTP that he hopes another company might purchase the plant.