Construction now taking place to facilitate the relocation of National Processors

The GraceKennedy (GK) Group today (February 8) announced that it is merging two of its local manufacturing divisions. The merger process, which has already started, will see operations at GK Foods and Services and National Processors (Nalpro) being combined with Grace Food Processors Canning.

Arising from the decision ro merge the entities, Nalpro’s operations, which are currently situated at Temple Hall in St Andrew, are being relocated to Grace Food Processors Canning at Twickenham Close in Kingston.

The relocation, which will involve the construction of expanded facilities to accommodate Nalpro’s operations at Grace Foods Processors Canning is projected to take 18 months.

Construction is scheduled to begin at Canning in the second quarter of 2021 to accommodate the Nalpro production lines and the relocation of Nalpro to Canning is expected to be complete by the second quarter of 2022.

Merger in keeping with strategic objectives

In a news release today announcing the merger, GK Group CEO Don Wehby explained that, “the strategic decision to merge the operations of Nalpro and Canning is in keeping with GraceKennedy’s objectives to increase exports from 30 per cent to 50 per cent of our manufactured output by 2025 and also significantly increase domestic production”.

According to Wehby, “the move will better position GK Foods to maintain operational excellence. He reported that GraceKennedy has invested over US$12 million in upgrading the company’s manufacturing facilities over the past five years and have also added two new plants at Denbigh and Hounslow”.

The GraceKennedy boss stated: “We will continue to invest in modernising our manufacturing divisions to remain internationally competitive. GK is not only committed to growing our own manufacturing business, but also to making significant contributions to the growth of manufacturing and agro-processing in Jamaica on a whole, which we see as pivotal to national development.”

Nalpro currently manufactures drink crystals, cereals, and dry mixes for soups while Canning produces canned vegetables, sauces, and beverages, including Grace Tomato Ketchup and Tropical Rhythms.

Continuing, the GraceKennedy group made the point that “relocating Nalpro was really a difficult decision to make, but it’s a necessary one that’s in the interest of all our stakeholders and in keeping with our company’s vision. We have operated from Temple Hall for over four decades and developed a great relationship with the surrounding community over the years”.

He reiterated that “GK remains committed to supporting them in any way we can going forward”.

Merger under consideration for sometime

For his part, Frank James, chief executive officer of GK Foods – Domestic, said that “the merger of Nalpro and Canning has been under consideration by GK for some time, as we are continuously looking for new ways to drive growth, reduce costs and remain internationally competitive”.

James noted that there are considerable transportation savings, reduced export consolidation expenses and improved administrative efficiencies to be realised with Nalpro’s relocation to Canning.

The management of the Jamaican conglomerate has determined that the location being expanded is the best place to house the merged operations because of its proximity to the ports.

James noted that Nalpro and Canning play a key role in achieving our export objectives. He argued that “the timing is right for this merger, and we look forward to making our vision become a reality”.

Last September, Wehby reported that GK’s manufacturing segment had been successfully navigating the impacts of COVID-19. During the pandemic, GK manufacturing has continued to record significant growth.

The company attributes this positive performance to the strategic investments and innovation, as well as heightened demand for several key Grace brands products during the pandemic such as Vienna sausages, ketchup, canned vegetables, porridges and soups – which are all manufactured locally.

Other locally manufactured GK products, such as Tropical Rhythms, have also experienced growth in Jamaica and internationally