Frozen potato products producer Lamb Weston has announced plans to shut down its production facility in Broekhuizenvorst, the Netherlands, to align its global supply chain footprint with evolving market conditions and as part of its broader executional excellence efforts.
Closure of the plant will affect approximately 110 employees and, reportedly result in pretax charges of $80 million to $110 million, primarily related to the write-down of long-lived assets and inventory and to employee severance and termination benefits.
“These actions are part of our commitment to ensure the long-term resilience and competitiveness of our global supply chain network,” said Sylvia Wilks, chief supply chain officer of Lamb Weston. “While this is a very difficult step, particularly given the strong commitment of our Broekhuizenvorst team, it is necessary to position us to improve our operational efficiency and better align our manufacturing footprint with customer needs.”
The company will now initiate a formal consultation process with the Works Council, in accordance with Dutch regulations. Committed to conducting this process in an open and constructive manner, it will communicate further details following its completion.
These strategic actions, according to a press release issued by Lamb Weston on June 4, are part of an “ongoing execution of its Focus to Win strategy, which includes prioritizing markets and channels, strengthening customer partnerships, achieving executional excellence and setting the pace for innovation.”
