H.B. Fuller to Reduce Manufacturing and Logistics Footprint
US adhesives major H.B. Fuller plans to significantly reduce its global manufacturing footprint and streamline its North American planning and logistics structure.
On the occasion of the publication of the company’s results for the fourth quarter and financial year 2024, it announced a multi-year plan that is expected to reduce the number of manufacturing facilities from 82 today to a target of 55 when completed in 2030. Additionally, H.B. Fuller intends to reduce the number of warehouses in North America from 55 today to approximately 10 by the end of 2027.
As a result of these combined actions, the company expects to generate approximately $75 million in annualized cost savings once the plan is fully implemented in fiscal 2030. According to H.B. Fuller, 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. The company expects to invest approximately $150 million in incremental capital over the next five years associated with the expanded plan.
“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,” said Celeste Mastin, CEO of H.B. Fuller.
