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IFF Announces Decision to Close Canadian Manufacturing Facility: Part of Company's Ongoing Effort to Maximize Efficiency
NEW YORK, June 10 /PRNewswire-FirstCall/ -- International Flavors & Fragrances Inc. (NYSE: IFF) ("IFF" or "the Company") today announced that it would close its Canadian manufacturing facility and transfer all production to its South Brunswick, New Jersey and Carrollton, Texas locations. The Company will maintain its current Canadian sales staff and will have a third party- managed warehouse and distribution center in Canada to serve its Canadian customers. The decision is part of the Company's ongoing efforts to maximize the efficiency and capacity of its operations and cut costs.
"While our Canadian business has grown over the years," Richard A. Goldstein, Chairman and Chief Executive Officer of IFF says, "volumes are still far below the plant's capacity. With excess capacity in some of our other, larger facilities, it makes sense to consolidate production. In addition, significant capital investment would be required to upgrade the Canadian facility to the standards common in our other manufacturing sites. We simply cannot justify that kind of investment in a site we know will remain underutilized.
"It goes without saying that continuing to provide our Canadian customers with the superior products and service they expect and deserve from IFF is our highest priority," Goldstein adds. "Not only are South Brunswick and Carrollton ready and eminently able to absorb the production, but maintaining sales and distribution in Canada will ensure the transition is virtually seamless."
Production transfer will begin in July and the warehouse and distribution center is expected to be operational in October. The manufacturing facility is expected to close by December 1, 2004. At that time, 24 employees currently serving in manufacturing, administrative or operational roles in Canada will be released from their positions. IFF's Canadian sales staff will not be impacted by this decision. The facility itself -- the land and the building -- will be sold. The equipment will either be distributed to other IFF locations or will be sold or de-commissioned.
IFF is a leading creator and manufacturer of flavors and fragrances used in a wide variety of consumer products -- from fine fragrances and toiletries, to soaps, detergents and other household products, to beverages and food products. IFF is dedicated to The Pursuit of Excellence in every area of its business, using knowledge, creativity, innovation and technology to continually provide customers with the highest quality products and service and superior consumer understanding.
IFF has sales, manufacturing and creative facilities in 34 countries worldwide and annual sales exceeding $1.9 billion. For more information, please visit our Web site at http://www.iff.com.
IFF CAUTIONARY STATEMENT
Statements in this release, which are not historical facts or information, are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's reasonable current assumptions and expectations. Such forward- looking statements involve risks, uncertainties and other factors, which may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management's expectations. Such factors include, among others, the following: general economic and business conditions in the Company's markets, including economic and political uncertainties; interest rates; the price and availability of raw materials; the Company's ability to implement its business strategy, including the achievement of anticipated cost savings, profitability and growth targets; the impact of currency fluctuation or devaluation in the Company's principal foreign markets and the success of the Company's hedging and risk management strategies; the impact of possible pension funding obligations and increased pension expense on the Company's cash flow and results of operations; and the effect of legal and regulatory proceedings, as well as restrictions imposed on the Company, its operations or its Representatives by foreign governments.
The Company intends its forward-looking statements to speak only as of the time of such statements and does not undertake to update or revise them as more information becomes available or to reflect changes in expectations, assumptions or results.
SOURCE International Flavors & Fragrances Inc. -0- 06/10/2004 /CONTACT: Gail S. Belmuth, Vice President, Corporate Communications, IFF, +1-212-708-7208/ /Web site: http://www.iff.com / (IFF) CO: International Flavors & Fragrances Inc.; IFF ST: New York, New Jersey, Texas, Canada IN: HOU SU: KB -- NYTH098 -- 0392 06/10/2004 16:00 EDT http://www.prnewswire.com