Rich Products Corp. is to close a site in Minnesota, one of three facilities the company has in the US state.
The privately-owned US group indicated there would be efficiency gains from the closure of the plant in Fridley.
“The decision was part of a regular assessment of our operations to ensure we’re running our production as efficiently as possible – at both the right capacity and at the lowest possible cost for our customers and consumers of our products,” a Rich Products spokesperson said in a statement provided to Just Food.
“Continually optimising our operational efficiency is an important move that enables us to drive growth, create enhanced value for our customers and keep costs down for consumers who enjoy our products.”
US media reports said some 170 staff worked at the Fridley facility.
Rich Products did not confirm that number when approached by Just Food but the spokesperson said: “It’s important to note that Rich’s will continue to have a presence in Minnesota, as we operate two facilities in Motley and Eagan, comprised of more than 200 associates.”
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The company acquired the bakery in 2020 from fellow US manufacturer TreeHouse Foods.
In February, Rich Products said it would invest $27m to expand production at a bakery in Tennessee.
The group was aiming to increase output at the plant in Morristown, with an emphasis on cake and cupcake production.
Rich Products operates in several categories such as pizzas, icing and sweet starters, drinks, desserts and bakery products.
In February last year, the privately-owned manufacturer expanded a factory in Brownsville, Texas.
