Ingredion Inc. to shut down Canadian plant protein facility

CANADA – Ingredion Inc. has announced plans to halt operations at its plant protein concentrates and flour production facility in Vanscoy, Saskatchewan, Canada, effective January 6. 

The decision comes after a strategic review, the company revealed in a December 31 filing with the US Securities and Exchange Commission (SEC).

The specialty ingredients company also stated its intention to sell the facility and surrounding property. 

However, as of the filing date, no sales agreements had been finalized.

The Vanscoy facility became part of Ingredion’s portfolio through its acquisition of Verdient Foods in November 2020. 

In August 2021, Ingredion introduced new capabilities at the site, enabling it to produce specialty concentrates and flours derived from peas, lentils, and fava beans. 

These products were intended for use in a range of food and pet food applications.

The facility’s enhancements included a proprietary processing line designed to expand the company’s production of pulse-based ingredients. 

Despite these investments, Ingredion has decided to discontinue operations at the plant.

According to the SEC filing, the closure plan will result in pre-tax charges totaling approximately US$66 million. 

Of this amount, around US$65 million will account for impairment charges related to the write-down of fixed assets and inventory. 

The remaining US$1 million will cover cash expenses, including costs associated with employee terminations and other related expenses.

The company expects most of these charges to be recorded in the fourth quarter of 2024, with the remainder extending into fiscal year 2025. 

Approximately 20 employees will lose their jobs as a result of the closure.

Ingredion, headquartered in Westchester, Illinois, transforms plant-based materials such as grains, fruits, and vegetables into ingredient solutions for the food, beverage, animal nutrition, brewing, and industrial markets. 

In 2023, Ingredion reported annual net sales of $8 billion.

The company’s decision to shutter the Vanscoy facility marks a significant step in its operations, though it has not disclosed specific reasons behind the closure. 

Efforts to sell the facility and property are ongoing.

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