Lance to consolidate Canadian sugar wafer operations
June 04, 2007
by Eric Schroeder
CHARLOTTE, N.C. — Lance, Inc. announced it will consolidate its sugar wafer manufacturing operations in Canada by closing its Waterloo, Ont., facility and shifting production to its two remaining sugar wafer facilities located in nearby Guelph and Cambridge, Ont. Lance operates the facilities under its Canadian subsidiary, Tamming Foods Ltd.
According to Lance, the consolidation will begin in November, with overhead savings from the consolidation set to begin in the third quarter of 2008. Lance said expenses related to transition and severance costs for employees displaced by the consolidation will not have a material impact on its 2007 financial results.
"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 chief executive officer of Lance. "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."