Utz Brands Inc.’s oldest manufacturing plant in Hanover will cease operations in the first quarter of 2024 as part of several initiatives it expects to support long-term growth.
Utz Brands, in a statement, said no jobs will be lost in the Carlisle Street plant closing as they will be moved to one of the three other manufacturing facilities in Hanover.
As part of the multi-faceted plan to optimize supply chain, Utz said it has signed an agreement for a new approximately 650,000 square foot distribution center at the Northeast Logistics Center in Hanover, which is expected to open in the first quarter of 2025.
In its statement, Utz said it has begun to streamline operations by selling several facilities within its network to lower costs and improve margins.
The moves will also strengthen relationships with a key co-manufacturing partner and improve its warehousing network to support future growth and strengthen customer service, it said.
Utz said it has sold its manufacturing plant in Bluffton, Indiana. Plans also call for selling its Louisiana manufacturing plant, which was irreparably damaged by Hurricane Ida in 2021, and its Alabama plant which closed in June 2023.
“Utz has been on a tremendous growth journey in recent years, and we are continuously evaluating ways to maximize the impact of Utz’s resources and footprint,” said Kevin Brick, company spokesperson. “As part of making Utz a more optimized and nimble organization, we made the decisions announced today, including the closure of our Carlisle Street Plant and the sale of our manufacturing operations in Bluffton, Indiana. We are grateful to our Carlisle Street and Bluffton colleagues for their many contributions to Utz.”
Following these actions, Utz said it will have 13 active plants, which includes the manufacturing facility in Kings Mountain, North Carolina, which it bought in April 2022.
The sales and closures are expected to drive increased net sales in its remaining plants, which Utz said will pick up the volume and reduce overhead.
The Bluffton Plant, which makes products associated with the TGIF brand as well as certain of Utz’s kettle chip brands, was sold to Super-Pufft Snacks USA, Inc. and its affiliated entities (“Super-Pufft”), an existing co-manufacturing partner.
Super-Pufft received real estate and manufacturing assets in the transaction, and in return, Utz entered a newly established co-manufacturing relationship with Super-Pufft, under which Super-Pufft will manufacture certain TGIF products.
Over time, Utz said it expects to shift production of these products into Utz owned and operated manufacturing facilities.
The Carlisle Street Plant served as a kettle chip manufacturing plant, producing Utz, Grandma Utz, and Zapp’s brands. Those products will be made in other plants including the Kings Mountain Plant, Utzs said.
The Northeast Logistics Center building will be adjacent to its High Street and Kindig Lane facilities, improving the company’s distribution system, Utz said by improving inventory management in one single location and allowing customers to order multiple brands on a single order.
The more optimized warehouse footprint will enable investment in automation and the implementation of a best-in-class warehouse management technology system, Utz said.