Greencore Group PLC

Management Reports • Mar 18, 2014

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RNS Number : 5797C

Greencore Group PLC

18 March 2014

18 March 2014

Greencore Group plc - Greenfield Factory Development in Rhode Island, USA

Greencore Group plc ("Greencore", the "Group") today announces that it is to build a greenfield sandwich manufacturing facility in Quonset, Rhode Island, USA. 

The new facility will be strategically located to enable Greencore USA both to service its existing markets in New England and also to develop future business opportunities closer to New York.  As a result of the project, the Group will close its existing facilities in Newburyport and Brockton, Massachusetts on a phased basis between April and September 2015.   Employees will be offered the opportunity to take up roles at the new facility.

The site will be over 100,000 square feet with a modular design that will enable future expansion, and will be built to the highest standards of hygiene, efficiency and process capability.  It will have sufficient capacity to support ongoing growth and will also result in material manufacturing process and distribution savings estimated at £5m.

The new site will employ 370 people when it opens in the Spring of 2015. 

The cost of construction and fit-out of the new facility is estimated at £20m and will be incurred over the next 15 months.  The Group will also recognise a non-cash impairment of assets in FY14 of £8m in relation to the exit from the Newburyport and Brockton sites, as well as cash exit and start-up costs estimated at £3m.  These costs will be reported as exceptional items.

Commenting on the investment, Patrick Coveney, Chief Executive Officer of Greencore, said:

"We are delighted to announce the development of a new food to go facility in Rhode Island. This investment will significantly enhance our capability and capacity to serve the sandwich market in the North Eastern region of the US, and will also enable us to drive further growth with current customers. Delivering this project will represent an important milestone as we continue to build a strong, growing, profitable food to go business in the USA."

For further information:

Alan Williams	Chief Financial Officer	Tel: + 353 1 605 1045
Rob Greening or Lisa Kavanagh	Powerscourt	Tel: + 44 20 7250 1446

Notes to Editors

1)    This announcement contains certain forward looking statements with respect to the financial conditions, results of operations and businesses of the Group. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements. Nothing in this announcement should be construed as a profit forecast.

2)    The Group confirms it will report its interim results for the half year to 28 March 2014 on 20 May 2014

About Greencore:

·     A leading manufacturer of convenience food in the UK and the US

·     Strong market positions in the UK convenience food market across food to go, chilled prepared meals, chilled soups and sauces, ambient sauces & pickles, cakes & desserts and Yorkshire puddings

·     A fast growing food to go business in the US, serving both the convenience and small store channel and the grocery channel

This information is provided by RNS

The company news service from the London Stock Exchange

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