CROP protection manufacturer Nufarm will close its manufacturing operations at Calgary, Canada, in a restructure of its North American operations.
Nufarm will transfer manufacturing activities from Calgary to its facilities in the Chicago area.
It has invested in improvements in its Chicago Heights facilities including a state-of-the-art seed treatment operation and full retooling of the herbicide facility.
In a statement, Nufarm's group executive operations, Elbert Prado, said the new Chicago facilities would provide greater capacity and support to respond to the needs of Canadian customers.
"This proved a more efficient approach than expansion of the Calgary site," he said.
The rationalisation of the company's Calgary manufacturing activities is expected to result in permanent annualised EBIT improvement of $3.3 million.
The changes are expected to be implemented by June next year, with the savings fully realised in Nufarm's 2017 financial year.
Nufarm also announced today that it's progressing with its previously announced plan to rationalise its footprint in the Australia-New Zealand and Europe regions.
The Welshpool site in Western Australia is now closed and in the process of being sold, while the manufacturing facilities at Otahuhu in New Zealand, Lytton in Queensland, and Botlek in The Netherlands are in the process of being shutdown and remediated in preparation for the sale or return of assets.
The company's Pipe Road Laverton plant in Australia is also in process of reorganising its manufacturing workforce.
"The reorganisation, which will result in $5 million to $8m in annualised savings , is aimed at ensuring its regional businesses will be more competitive, responsive and efficient," Nufarm says.
