International Flavors & Fragrances Inc. closes its Canadian manufacturing facility


International Flavors & fragrances Inc. announced that it would close its Canadian manufacturing facility and transfer all production to its South Brunswick, New Jersey and Carrollton, Texas locations. The Company will maintain its current Canadian sales staff and will have a third party-managed warehouse and distribution center in Canada to serve its Canadian customers. The decision is part of the Company's ongoing efforts to maximize the efficiency and capacity of its operations and cut costs.

"While our Canadian business has grown over the years," Richard A. Goldstein, Chairman and Chief Executive Officer of IFF says, "volumes are still far below the plant's capacity. With excess capacity in some of our other, larger facilities, it makes sense to consolidate production. In addition, significant capital investment would be required to upgrade the Canadian facility to the standards common in our other manufacturing sites. We simply cannot justify that kind of investment in a site we know will remain underutilized.

"It goes without saying that continuing to provide our Canadian customers with the superior products and service they expect and deserve from IFF is our highest priority," Goldstein adds. "Not only are South Brunswick and Carrollton ready and eminently able to absorb the production, but maintaining sales and distribution in Canada will ensure the transition is virtually seamless."

Production transfer will begin in July and the warehouse and distribution center is expected to be operational in October. The manufacturing facility is expected to close by December 1, 2004. At that time, 24 employees currently serving in manufacturing, administrative or operational roles in Canada will be released from their positions. IFF's Canadian sales staff will not be impacted by this decision. The facility itself - the land and the building - will be sold. The equipment will either be distributed to other IFF locations or will be sold or de-commissioned.

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