Greencore to build sandwich facility in Rhode Island

by Eric Schroeder
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DUBLIN, Ireland – Greencore Group PLC has unveiled plans to build a 107,000-square-foot sandwich manufacturing facility in Quonset, RI.

“We are delighted to announce the development of a new food to go facility in Rhode Island,” said Patrick Coveney, CEO of Greencore. “This investment will significantly enhance our capability and capacity to serve the sandwich market in the northeastern region of the US and will also enable us to drive further growth with current customers. Delivering this project will represent an important milestone as we continue to build a strong, growing, profitable food to go business in the US.”

As a result of the project, Greencore said it will close its existing facilities in Newburyport and Brockton, Mass., on a phased basis between April and September 2015. Employees will be offered the opportunity to take up roles at the new facility.

“The site will be over 100,000 square feet with a modular design that will enable future expansion and will be built to the highest standards of hygiene, efficiency and process capability,” Greencore said. “It will have sufficient capacity to support ongoing growth and will also result in material manufacturing process and distribution savings estimated at £5 million [$8.3 million].”

The new site will employ 370 people when it opens in the spring of 2015.

The cost of construction and fit-out of the new facility is estimated at £20 million ($33.2 million) and will be incurred over the next 15 months. Greencore also will recognize a non-cash impairment of assets in fiscal year 2014 of £8 million in relation to the exit from the Newburyport and Brockton sites, as well as cash exit and start-up costs estimated at £3 million. The costs will be reported as exceptional items.
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