Food manufacturing giant ConAgra recently announced its next phase of plant closing and production transfers as it continues it supply chain reorganization.

In March 2006, ConAgra Foods announced it would close 10 to 12 plants in the first phase of its plan to improve profitability. The company expects total plant rationalization efforts to result in a $100 million reduction in annual fixed costs by 2009.

The first details of this phase were announced in September 2006, including the closure of five plants.

A week ago, a second set of manufacturing changes was announced. These include:

• The closure of the ConAgra Foods microwave popcorn plant in Edina, Minn.  The company will transfer equipment and production capability to plants in Rensselaer, Ind., and Irapuato, Mexico, where the company says it will be able “to better meet customer demand while also maximizing efficiencies in warehousing, storage, and transportation.”
• A corresponding expansion of the Rensselaer facility, increasing production capacity and reorganize warehousing operations for improved efficiency in storing and distributing products there.
• The partial closure of the ConAgra Foods plant in Lake View, Iowa, which supplies bulk popcorn in tins and tote bags among other popcorn products. The company will stop production of bulk popcorn in tins and totes in May, 200 and focus operations there on popping corn and popcorn seeds.
• The closure of a plant in St. Paul, Minn., which produces popcorn balls, transferring that work to a plant in Lakeville, Minn.

The company says the manufacturing changes will help it to “streamline operations, reduce operating costs, improve capacity utilization and improve gross margins.”