Givaudan (Geneva) has announced the closure of its US production sites in New Milford, Connecticut and in Oconomowoc, Wisconsin. The activities of these two sites will be transferred to Cincinnati 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 CHF 22 million, of which CHF 16 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. With these products the company has realized in 2005 a turnover of around CHF 45 million. The phasing out will last until 2007.