Lance, Inc. to Consolidate Sugar Wafer Manufacturing Operations in Canada
The Company plans to begin the consolidation in November 2007, and will begin realizing overhead savings from the consolidation beginning in the third quarter of 2008.
06/06/07 Lance, Inc. announced that it will consolidate its sugar wafer manufacturing operations in Canada by closing its Waterloo, Ontario facility and shifting production to its two remaining sugar wafer facilities located in nearby Guelph and Cambridge, Ontario. The Company plans to begin the consolidation in November 2007, and will begin realizing overhead savings from the consolidation beginning in the third quarter of 2008. The Company anticipates that expenses related to transition and severance costs for employees displaced by the consolidation will not have a material impact on its 2007 financial results, and had included estimates for these costs in its full-year 2007 earnings guidance issued this past April.
"The decision to consolidate our sugar wafer manufacturing facilities is consistent with our strategy to streamline our overall supply chain and increase manufacturing efficiency," said David V. Singer, President and CEO of Lance, Inc. "We will be able to operate with fewer facilities while continuing to provide great products and service to our customers and maintaining the capacity and flexibility needed to support continued growth."