US soft drinks giant PepsiCo has confirmed plans to close its Gatorade plant in Pryor, Oklahoma, with the loss of around 100 jobs.
The company said today (14 February) that the decision to shut down the plant was based on economic conditions and in order to keep Gatorade’s overall manufacturing capacity in line with current market demands.
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Over the coming weeks, crews will work through the final closure, the firm said, with the target date for completion expected in three months time.
Pat Burke, PepsiCo regional spokesperson, told just-drinks: “We worked very hard over the past year to keep the plant going. Unfortunately, in the end, based on the economic conditions, we determined we could not keep the plant open. We are grateful to the Pryor community, the State of Oklahoma and our associates for their support. This is no reflection of the performance of our associates or the hard work of our community and state partners.”
PepsiCo said all employees will receive three months and one week of full pay and benefits and other assistance, including outplacement services and counselling.
“We are committed to maintaining the Pryor facility as an attractive manufacturing site, so a new employer can move in. We will manage the grounds and equipment for as long as it takes to find a new tenant, and potential employer, to occupy the facility. Additionally, we will meet our 2010 charitable commitments in full, including a United Way commitment of almost $40,000,” Burke said.
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By GlobalDataIn December, PepsiCo announced plans to invest US$30m in 2010 to rejuvenate its Gatorade sports drink.
The investment includes improvements in packaging and ingredients, with the removal of high fructose corn syrup (HFCS) from all Gatorade drinks.
