Ingredion Incorporated (NYSE:INGR), a leading provider of ingredient solutions, has announced plans to cease operations at its Vanscoy, Saskatchewan manufacturing facility, effective Monday.
The decision, part of a strategic review, anticipates a pre-tax non-recurring charge of approximately $66 million, with the majority expected in the fourth quarter of 2024.
The plant, specializing in plant protein concentrates and flour, will be shutting down due to a strategic shift within the company. Approximately 20 employees will be affected by this closure. Ingredion has expressed intentions to sell the facility and its underlying property, although no sale contract exists as of this report.
The anticipated charges consist of roughly $65 million in impairment charges related to fixed asset and inventory write-downs, and approximately $1 million in cash expenditures, including costs associated with employee severance and other termination-related expenses. These charges are expected to be largely recognized in the fourth quarter of 2024, with the remainder spanning into fiscal 2025.
Ingredion's move to close the Vanscoy facility is expected to incur a significant pre-tax, non-cash asset impairment charge, reflecting the company's reassessment of the value of its assets in light of the cessation of operations.
The news above is based on an SEC filing.
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