GraceKennedy Consolidation of Two Manufacturing Divisions Near Completion

• GraceKennedy Limited (GK) has advised that the merger of two of its local manufacturing divisions, National Processors (Nalpro) & Grace Food Processors Canning (Canning) is near completion. The combined operation has been named Grace Food Processors NALCAN. 
• The strategic decision to merge the operations of Nalpro and Canning was in keeping with GraceKennedy’s objectives to increase exports from 30% to 50% of their manufactured output by 2025, and also significantly increase domestic production.  
• The merger will see the relocation of Nalpro’s operations, which was situated in Temple Hall in St Andrew, to Canning at Twickenham Close in Kingston. Nalpro manufactures drink crystals, cereals, and dry mixes for soups; while Canning produces canned vegetables, sauces, and beverages, including Grace Tomato Ketchup and Tropical Rhythms. 
• Considerable transportation savings, reduced export consolidation expenses, and improved administrative efficiencies are expected to be realized with Nalpro’s relocation to Canning, which was determined to be the best place to house the merged operations because of its proximity to the ports. 
• The merger will be beneficial as the company continues to drive growth, reduce costs and remain internationally competitive to improve future shareholder value.

(Source: JSE)