Blue Diamond has announced plans to wind down operations at its plant in Sacramento, California, cutting some 600 jobs in the process.
The cooperative says it was founded in 1910 to "ensure the long-term success of small, multigenerational almond farmers and their families in California."
To keep that mission on track, Blue Diamond says it must shutter its plant in midtown Sacramento, transferring most manufacturing operations from the 53-acre site to facilities in Turlock and Salida, California.
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While the company's legacy spans more than a century, Kai Bockmann, president and CEO of Blue Diamond Growers, says the challenges of running a plant from the historic buildings has become too costly and inefficient.
Bockmann said, "Streamlining our manufacturing plants is the right business move to further strengthen our market-leading position and bring increased value to our grower members.”
On June 6, Bockmann met with employees at the Sacramento plant to break the news. The transition will begin later this year when the company cuts roughly 10% of plant employees. The remaining cuts will occur in phased reductions over the next 18 to 24 months.
Bockmann added, "Even though most employees will not leave this year, we want to be transparent and tell our people as soon as possible. We are committed to putting in the energy, time and resources to help our impacted team members.”
The company is providing incentives for workers to stay during the transition and will offer severance and outplacement services for laid off employees. Some workers will have a chance to relocate to other Blue Diamond locations.
The company will remain based in Sacramento. Blue Diamond has some 1,400 employees spread throughout its processing plants and receiving stations.
The cooperative says it is looking for prospective investors who may be interested in purchasing the large site near downtown Sacramento.
"The impending vacating of the Blue Diamond Growers plant represents a truly unique opportunity for Sacramento. This 50-acre site, a historical landmark, is poised for a transformative next chapter," said Jack Lawrence, director of sales and leasing at Capital Rivers, a commercial real estate agency in Sacramento. Lawrence focuses on the industrial market in the region. "The land itself holds significant inherent value.”
Lawrence says the existing water and power infrastructure, crucial to food processing, are invaluable assets for future development.
"While I can't put a precise number on it, the sheer size and strategic location of this historical site mean its value is substantial and unique in our market," Lawrence said.
Prior to redevelopment, the site will likely require a significant environmental assessment.
“Any large, long-standing industrial facility, particularly one that was a cannery, will likely require a thorough environmental assessment,” Lawrence said. “While Blue Diamond has had environmental issues in the past (like the 1995 air pollution settlement), any prospective developer will undertake comprehensive environmental due diligence to understand and account for necessary remediation. This is standard practice for sites of this nature and will be a key factor in the redevelopment plans.”
About 30 years ago, the EPA announced a deal with Blue Diamond, previously known as the California Almond Growers Exchange, to pay nearly $700,000 to settle charges for greatly exceeding air pollution limits at the facility.
“This closure, while marking the end of an era, truly presents a rare and exciting opportunity for Sacramento's growth,” Lawrence said. “I'm confident that the strategic redevelopment of this site will bring immense value to our city.”
Blue Diamond Growers is a 115-year-old almond cooperative that represents some 3,000 almond growers in California. It is credited with bringing the benefits of "big almond" to the world.
Blue Diamond did not immediately respond to an IEN request for additional comment.
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