Ingredion plans to consolidate its manufacturing network in Brazil, thereby closing plants in Trombudo Central and Conchal.
Production will be moved to facilities in Balsa Nova and Mogi Guaçu, respectively.
The consolidation will begin early in 2016 and should be complete by the end of the year.
It is expected to result in annual cost savings of US$6-$8 million beginning in 2017.
Total pre-tax restructuring-related charges of US$13-16 million are anticipated in the third quarter of 2015.
“The slowing economy recently has impacted volumes in Brazil. However, our continuous improvement programs continue to drive good operational efficiencies,” says CFO Jack Fortnum.
In addition to Balsa Nova and Mogi Guaçu, Ingredion will continue to operate facilities in Cabo de Santo Agostinho and São Gonçalo, Brazil.