ST. PAUL, Minn.—H.B. Fuller, in the next five years, will undertake a major consolidation of its global and North American manufacturing footprints, CEO and President Celeste Mastin said.
The multi-year plan is expected to reduce the number of manufacturing facilities from 82 today to a target of 55 when completed in 2030.
Additionally, the plan will streamline the number of warehouses in North America from 55 today to approximately 10 by the end of 2027, offering a better "planning and logistics structure" on this continent.
H.B. Fuller said these actions will generate approximately $75 million in cost savings per year once the plan is fully implemented in 2030. About $150 million in capital will be spent over the next five years to bring the plan to fruition.
"These figures are incremental to the ongoing restructuring actions, which are still expected to generate annualized cost savings of $45 million by the end of fiscal 2025," Mastin said. "Our manufacturing footprint consolidation, coupled with our planning and logistics reorganization, are important steps in our strategic plan to achieve an EBITDA margin consistently greater than 20 percent.
"These actions will not only reduce costs through improved capacity utilization, they will also enable us to better serve our customers and reduce future capital expenditure requirements."