Givaudan announced the closure of its U.S. production sites in New Milford, Connecticut and in Oconomowoc, Wisconsin. The activities of these two sites will be transferred to Cincinnati, Ohio and Devon, Kentucky.
The decision for the closures was made in an effort to continue consolidating the company’s flavor operating asset base and to streamline its savory product line. Completion of the closure and consolidation initiatives is expected by mid 2007. Givaudan will incur one time costs of $17 million, of which $12 million from asset impairment impact the 2005 results.
In relation to these transfers, Givaudan has also decided to discontinue businesses with commodity type savory base notes. The company realized a turnover of approximately $35 million with these products in 2005. The phase out will last until 2007.
