US HB Fuller to shut down one-third of plants worldwide

Al Greenwood

15-Jan-2025

HOUSTON (ICIS)–HB Fuller plans to shut down nearly one-third of its plants globally and drastically reduce the number of warehouses it has in North America, the US-based adhesives producer said on Wednesday.

When HB Fuller completes the shutdowns in its fiscal year of 2030, it will have 55 plants globally, down from 82, the company said.

By the end of 2027, HB Fuller will have 10 warehouses in North America, down from 55.

HB Fuller expects to cut annual pre-tax costs by $75 million/year by the time it completes the shutdowns. The company expects to spend $150 million over the next five years to shut down the sites.

“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%,” said Celeste Mastin, CEO. “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.”

As an adhesives producer, HB Fuller’s raw materials include tackifying resins, polymers, synthetic rubber, plasticizers, and vinyl acetate monomer (VAM).

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