Del Monte to Close Two California Fruit Plants

Del Monte Foods has announced a four-year plan to consolidate its core California manufacturing base. The company said that in 1999 it will transfer tomato production from its Modesto plant to its recently acquired Contadina tomato plant in Hanford, Calif., and convert the Modesto facility into a state-of-the-art fruit processing operation. At the end of the 1999 canning season, Del Monte will close its San Jose fruit plant, transferring production to the modernized Modesto facility. At the end of the 2000 canning season, as production at the Modesto plant expands to full capacity, the company will close its Stockton fruit plant.

"These plans result from extensive study and our recognition that we need to maintain a low cost position in very competitive markets," said Wesley J. Smith, Del Monte's chief operating officer. "Considerations of plant age and location were primary factors in our decision."

The company expects about 2,900 seasonal and full-time employees in San Jose and Stockton to be affected by these decisions, though at least 1,900 new jobs are expected to be added at the Modesto and Hanford facilities.

Del Monte's San Jose plant produces canned apricots, fruit cocktail and single serve fruit cups. The Stockton plant produces peaches and fruit cocktail. The Modesto and the Hanford/Contadina plants were built solely for tomato production, in 1969 and 1976, respectively.

Del Monte Foods Company, owned by Texas Pacific Group, is the largest branded processor of canned fruits, vegetables and tomatoes in the United States.