WESTCHESTER, ILLINOIS, U.S. — Ingredion Inc. announced on Sept. 8 that it plans to consolidate its manufacturing network in Brazil. Plants in Trombudo Centra, which produce modified starches, and Conchal, dedicated to cassava processing, will be closed. Production will be moved to plants in Balsa Nova, which processes different types of corn, and Mogi Guaçu, which produces regular and modified starches.

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 $6 to $8 million beginning in 2017. Total pre-tax restructuring-related charges of $13 to $16 million are anticipated in the third quarter of 2015.

“We continuously evaluate our manufacturing network for improvement opportunities. Consolidating production into Balsa Nova and Mogi Guaçu is part of our overall restructuring program in our Brazilian operations to reduce costs in our network,” said Ricardo Souza, president, Ingredion South America.

“The slowing economy recently has impacted volumes in Brazil. However, our continuous improvement programs continue to drive good operational efficiencies. We will remain vigilant in our efforts to maximize productivity and enhance shareholder value,” Ingredion chief financial officer, Jack Fortnum said.

In addition to Balsa Nova and Mogi Guaçu, Ingredion will continue to operate facilities in Cabo de Santo Agostinho and São Gonçalo, Brazil.