Ingredion Inc. shuts Canadian plant protein facility

CANADA – Ingredion Incorporated, a leading global provider of ingredient solutions, has ceased operations at its plant protein concentrates and flour manufacturing facility in Vanscoy, Saskatchewan, Canada, effective January 6, 2025.

The decision follows a strategic review of the company’s operations. In a Form 8-K filing with the U.S. Securities and Exchange Commission on December 31, 2024, Ingredion announced plans to sell the facility and its property; however, no sales contract has been finalized as of the filing date.

The Vanscoy facility became part of Ingredion’s portfolio through the November 2020 acquisition of Verdient Foods. In August 2021, the company expanded the plant’s capabilities to produce specialty pulse-based concentrates and flours derived from peas, lentils, and fava beans.

This expansion included a new production line featuring proprietary processing technology, enabling manufacturers to incorporate plant-based proteins into a broader range of food and pet food products.

As a result of the closure, Ingredion expects to incur pre-tax non-recurring charges totaling approximately US$66 million. This amount includes about US$65 million in impairment charges related to fixed-asset and inventory write-downs, and roughly US$1 million in cash expenditures for employee-related costs and other termination expenses.

Approximately 20 employees will be affected by the shutdown. The company anticipates that these charges will be largely recognized in the fourth quarter of 2024, with the remainder extending into fiscal 2025.

Ingredion specializes in transforming grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for various markets, including food, beverage, animal nutrition, brewing, and industrial sectors. In 2023, the company reported annual net sales of US$8 billion.

The closure of the Vanscoy facility reflects Ingredion’s ongoing efforts to optimize its operations and align with strategic business objectives. The company continues to focus on delivering innovative ingredient solutions to meet evolving market demands.

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