International Home Foods Inc. announced Friday that it will close its Clearfield marshmallow-making plant, laying off 175 employees.
Spokeswoman Ellen Ciuzio said International's Freeport Center facility, which produces Campfire brand marshmallows, will close in the first quarter of 1999. The Utah manufacturing will be transferred to a Lakeville, Minn., facility that currently makes cereal bars, she said."The decision was based on a review of all of International Home Foods' manufacturing operations and their capabilities," Ciuzio said.
She said International has only owned the Clearfield plant for two years, but Campfire has been making marshmallows in Utah for 11 years.
Utah employees have known about the planned closure since July 1, she said, and they will receive severance packages.
International, which has about 6,900 employees, has been leasing the Freeport Center building. The company is based in Parsippany, N.J.
The company also announced Friday that it will close its plant in Vacaville, Calif., in December, and an adjacent distribution center in the first quarter of 1999.
The California plant, which has 350 employees, produces Ro-Tel brand tomatoes and certain Chef Boyardee products. Most of its production will be shifted to International facilities in Milton, Pa.
According to a company press release, International will record a one-time, pre-tax charge of about $41 million in the third quarter of 1998 in relation to the moves. About $30 million of that will be non-cash charges, while $9 million will be cash charges for employee severance and benefits and $2 million for facility closure costs.
International Home Foods' brands include Bumble Bee and Orleans canned seafood, PAM cooking spray, Libby's canned meats, Polaner fruits and spreads and Gulden's mustard.
The company had 1997 revenues of $1.22 billion.