HANOVER, Pa. — Utz Brands announced Friday that it will close its Carlisle Street manufacturing plant in Hanover in the first financial quarter of 2024 as part of a plan to "streamline its operating structure by consolidating volume into a smaller number of facilities."
The changes are expected to lower costs and improve margins, the Hanover-based snack company said in its announcement.
There will also be no job losses associated with the closure of the facility, Utz emphasized in its announcement.
Utz also hopes to increase capacity in its warehousing network to "support future growth, drive efficiency, and strengthen customer service."
The Carlisle Street plant is the company's oldest, and also its lowest-volume manufacturing plant, Utz said. The facility makes kettle chips, producing the company's Utz, Grandma Utz, and Zapp's brand products.
With the expansion of kettle manufacturing capacity across its network, Utz said, the expects to absorb the volume of kettle chips produced in the Carlisle Street plant.
Once the facility is closed, Utz said, the company plans to "explore asset monetization options."
Employees at the Carlisle Street plant will move to other positions within the company across Hanover, a company spokesperson said.
As part of Friday's announcement, Utz also said it has signed a built-to-suit agreement for a new, 650,000-square-foot distribution center that will be located adjacent to its High Street and Kendig Lane facilities in Hanover. The new distribution center is expected to open in 2025, the company said in its announcement.
Utz also said it is divesting its manufacturing plant and all related assets in Bluffton, Indiana and is placing two other plants up for sale -- a manufacturing plant in Louisiana that sustained irreparable damage in 2021 as a result of Hurricane Ida, and an Alabama facility that was closed in June.
Utz will have 13 active plants left after Friday's announced plans are implemented, the company said.
Located in Hanover, Utz Brands Inc. makes Utz, On The Border Chips & Dips, Golden Flake, Zapp's, Good Health, Boulder Canyon, and Hawaiian Brand and other snacks.