Robert Sharpe, president and CEO of CSM, said the company is planning several moves designed to optimize business operations and better serve its customer base.
“We are excited about the overall landscape of our industry and the role we can play in delivering some of the industry’s best fresh-baked goods to our customers,” said Robert Sharpe, president and chief executive officer. “With these actions, we are clearly investing in our future. In the next two years, we will dedicate more than €150 million ($170 million) to position our company for long-term growth.”
CSM said several initiatives already are planned or are under way, including infrastructure and capacity improvements in the company’s Atlanta, Georgia, U.S., ingredients operations; equipment and infrastructure upgrades in the company's facilities in Eagan, Minnesota, U.S.; Dallas, Texas, U.S.; and Colton and Pico Rivera, California, U.S.; and process improvements in its Ogden, Utah, U.S., operations. The company also said it is making similar infrastructure and equipment upgrades in its existing Bradford and Daventry operations in the U.K. and is building a new, high-tech facility in Daventry.
In addition to upgrades, CSM said it will close its manufacturing operations in Houston, Texas, U.S., toward the end of 2016 and in Esher and Ashington in the U.K. by the end of 2017. The company cited “lack of capacity and other constraints” as the reason behind the closings.
CSM said it will close its manufacturing operations in Houston, Texas, U.S., toward the end of 2016.
Sharpe said the strategic investments and footprint changes will position CSM to better serve its customers and the industry.
“These actions will enhance our overall productivity, capabilities and capacity to allow us to profitably grow the business in the years ahead,” he said. “We have a great passion to deliver industry-leading solutions to our customers, and these actions enhance our ability to do so. Our customers’ growth and success will be our growth and success.”
Affiliates of Rhone Capital in 2013 purchased CSM Bakery Supplies, now CSM Bakery Solutions, from CSM nv, which changed its name to Corbion, for an enterprise value of €1.050 billion. CSM Bakery Solutions produces and distributes bakery products and ingredients for artisan and industrial bakeries, and for in-store and out-of-home markets, mainly in Europe and North America. CSM has annual revenues of approximately $3 billion and more than 45,000 global customers, with a global footprint and integrated supply chain that includes 34 manufacturing facilities, 26 distribution centers and 4 innovation centers.