Marel is taking two significant steps towards a more streamlined and cost effective future manufacturing footprint in line with Marel’s ongoing Simpler, Smarter, Faster refocusing program.
• Marel is refocusing its product portfolio to concentrate on areas of competitive advantage and to strengthen its market position. As a result, Marel is ceasing its production of freezers in Singapore and is entering into partnership to continue to provide freezing solutions for integrated solutions its customers. The wind-down of manufacturing activities in Singapore has begun and is expected to be finished before mid-year 2015. The costs associated with the closure were booked as one-off costs in Q4 2014. The closure of the manufacturing operation in Singapore will increase operational profit during the second half of 2015 and onwards.
• Marel is merging its Des Moines, Iowa manufacturing operation to an existing facility in Gainesville, Georgia. The aim is to capture synergies and increase Marel’s competitiveness by consolidating its manufacturing platform into few multi-industrial manufacturing sites. The transition process will begin in January 2015, with completion before year-end 2015. The costs associated with the transfer will be booked as one-off costs in Q1 2015 and the benefits will take effect in 2016 and onwards.
• In addition, Marel is announcing an investment in a new innovation center in Des Moines with a focus on the meat and further processing industries. The new innovation center will replace the existing facility and at the same time Marel will sell current land and premises.
These two steps will result in the reduction of approximately 150 employees. Marel will provide support to the employees affected throughout the transition.
As a result, Marel’s U.S. operation will consist of: a multi-industry manufacturing site in Gainesville focusing on the poultry, meat and further processing industries; a manufacturing site in Seattle, Washington focusing on on-board solutions for the fish industry; a multi-industry sales and service office in Lenexa, Kansas; as well as an innovation center in Des Moines. All four of the U.S. sites will also continue to have a focus on sales and service support.
After the changes, Marel will have approximately 600 employees in the U.S. serving the dynamic and growing U.S. market.
Further details will be provided on the progress of the Simpler, Smarter, Faster refocusing program when the 2014 annual results are announced on February 4, 2015.