Blue Diamond Growers, a grower cooperative that represents nearly 3,000 almond growers in California, said it will wind down and close its midtown Sacramento plant, transferring most of its manufacturing operations to facilities in Turlock and Salida, Calif.
The cooperative cites high costs of running a plant in a historic building as a main driver for the move, according to Kai Bockmann, president and CEO of the organization. The company said this will also move its processing operations in the Central Valley closer to its farmer-owners.
“Our Sacramento team’s work ethic and incredible drive have enabled us to build Blue Diamond into what it is today,” Bockmann said in a news release. “However, the challenges of running a plant from these historical buildings has become too costly and inefficient. Streamlining our manufacturing plants is the right business move to further strengthen our market-leading position and bring increased value to our grower members.”
Blue Diamond said the transition will begin later this year, as 10% of Sacramento plant employees will exit. Then, Blue Diamond will begin a transition in phases during the next 18 to 24 months, with the move impacting about 600 employees.
“This is a significant decision as it affects our valued team members,” Bockmann said. “We couldn’t ask for a better group of people. That’s what makes it so difficult. Even though most employees will not leave this year, we want to be transparent and tell our people as soon as possible. We are committed to putting in the energy, time and resources to help our impacted team members.”
Blue Diamond said it will provide incentives for employees to stay during the transition as well as severance and outplacement services for impacted positions. The company also said it will offer some team members the opportunity to work in other locations.
The company’s headquarters will remain in Sacramento, and Blue Diamond said there will be many opportunities for investors to develop and improve the 50-plus-acre site close to downtown Sacramento.
