Andy Thompson
In the latest attack on jobs, Del Monte Foods announced last Thursday that they will be closing two plants in Illinois and Minnesota, laying off at least 800 workers. Additionally, the company will sell plants in Wisconsin and Texas calling into question the employment status of another 700 workers.
In 2013, San Francisco-based Del Monte Foods, which was being held by a private equity firm, was bought out in a $1.6 billion takeover by Del Monte Pacific, a transnational corporation based in the Philippines.
Del Monte Foods claims that the closing is due to changing market circumstances and a fall in demand for their products. A representative from the company specifically stated that, “Tariffs did not factor into this decision. The decision was made in order to align production with current consumer demand.”
Still, the closing of the plant is likely at least partly due to tariffs imposed by the Trump administration. In June, Del Monte Pacific CFO Parag Sachdeva stated that the company is seeing an increase in costs due to “rising metal packaging prices and impact of tariffs imposed by the U.S. government.”
The Trump administration has imposed tariffs of 25 percent on imported steel and 10 percent on aluminum. Both materials are used in the production of cans in Del Monte plants.
In a statement after the closings were announced Del Monte said that the shutdowns are part of an “asset-light strategy” to cut costs and increase profits. In the past two years Del Monte also closed plants in Arkansas, North Carolina, Indiana and California, eliminating upwards of 400 jobs.
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