Ingredion Inc. announced plans to close its plant protein concentrates and flour manufacturing facility in Vanscoy, Saskatchewan, effective January 6. The closure follows a strategic review of the company’s operations.
In a filing with the US Securities and Exchange Commission on December 31, Ingredion revealed that it intends to sell the facility and property but has not finalised a sales contract.
The Vanscoy plant was acquired by Ingredion in November 2020 through its purchase of Verdient Foods. In August 2021, the company added production capabilities at the site to create pulse-based concentrates and flours from peas, lentils, and fava beans.
Ingredion expects to incur pre-tax non-recurring charges of approximately $66 million from the closure. This includes around $65 million in impairment charges for fixed-asset and inventory write-downs. The company also anticipates $1 million in cash expenditures for employee-related costs and other termination-related expenses, affecting about 20 employees. The charges are expected to be recognized primarily in the fourth quarter of 2024, with the remainder to follow in fiscal 2025. Ingredion, a provider of specialty ingredient solutions, reported $8 billion in net sales for 2023.
