Procter & Gamble shifts plant from Puerto Rico to North Carolina

By Simon Pitman

- Last updated on GMT

Procter & Gamble shifts plant from Puerto Rico to North Carolina

Related tags Puerto rico United states

Procter & Gamble has confirmed that is relocating part of its manufacturing in the town of Cayey, Puerto Rico, over to the Greensboro site in North Carolina as part of its restructuring program that includes fewer but larger facilities.

The Greensboro plant has been expanded in recent years on the back of considerable investment and is increasingly becoming a major North American manufacturing hub for the company.

P&G executives confirmed that the closure would lead to 230 employees being laid off, while the closure process will take place during the course of the next nine to 12 months.

Consolidating P&G's North American manufacturing

The facility, which is located in the southern part of the Caribbean island, was bought by P&G in 1985 and has been used to manufacture skin care products – mainly for the company’s key Olay brand.

The move serves to consolidate P&G’s manufacturing operations in North America, which is an integral part of its restructuring program.

Currently the company has 29 manufacturing facilities across North America, but the company is looking to trim that figure back further, particularly in the light of further divestments that will include the sale of up to 100 cosmetic and fragrance brands in the near future.

Puerto Rican manufacturing suffers

But it comes at a time when the economy in Puerto Rico is already suffering as a result of a continued decline in its manufacturing sector on the back of several major plant closures.

As a result, the Puerto Rican government has been trying to diversify its manufacturing base by offering incentives to manufacturers from a more diverse range of sectors.

Earlier last week P&G also announced that it was consolidating its paid media buying and publicity account for North America, in a move that will include the consolidation of the four current incumbents, which includes WPP Mediacom operations in Puerto Rico.

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