Newspaper article THE JOURNAL RECORD

City Dairy Plant Survives Reorganization by Borden

Newspaper article THE JOURNAL RECORD

City Dairy Plant Survives Reorganization by Borden

Article excerpt

Oklahoma City's Borden plant will survive the restructuring program announced Thursday that will close 65 of 265 plants.

Oklahoma City's plant is one of Borden's growth operations that has figured prominently in the past and will remain open and prominent in the future, said Tommy Hubbard, plant superintendent.

Borden Inc. unveiled the restructuring program that will eliminate a number of the dairy operations and reduce its work force by 15 percent following several years of acquisitions, which added $3.1 billion to Borden's annual sales.

Under the plan announced at a New York news conference, Borden will take a $571 million pre-tax charge against its third-quarter income, resulting in a quarterly loss of $300 million to $305 million and a loss of $47 million to $58 million for the full year.

The one-time charge, amounting to about $404 million after taxes, will help consolidate Borden's six business lines. The goal is to cut costs and boost pre-tax profit by $340 million through 1993.

The Oklahoma City plant, at 2126 N. Broadway, employs more than 200 people. It is one of Borden's growth plants and will not be affected, Hubbard said.

He said Borden would make every effort to sell the plants as going concerns and local management will be given the first crack at buying them.

Borden - which also is a leader in the pasta, wall coverings and glue businesses - intends to pull out of overcrowded dairy markets and concentrate on those where it has been doing well. Borden said it will retain its ranking as the world's biggest dairy business even after it reduces its operations by a third, or by $700 million to $750 in annual sales.

Romeo J. Ventres, Borden's chairman and chief executive officer, said 65 of the company's 265 plants worldwide will be closed or sold during the next two to three years.

Ventres said the plants to be closed and the dairy markets to be exited will be identified later. Borden's weaker markets generally are in the East and Southeast and the stronger ones are in the South and West, Ventres said.

Borden's program will reduce its worldwide employment by about 7,000 from the present 46,000. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.