So how many plants is dfa going to close? Will they close more dfa plants than Dean's plants? Dfa plants are probably bottom of the sc-ap heap otherwise they wouldn't have bought so many Dean's plants. time will tell I guess
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It makes complete sense to match production capacity with demand which is what DFA will do when they assess their new network. There is no way, with declining demand, that they will keep every current plant running. Pretty sure they have a network optimization team working on the numbers right now.
Because they will close the shoddy plants they currently have!!!
You can buy and rebuild a lot of equipment for $14 million. Buying, moving equipment, demolishing a plant, etc. all adds to those expenses if you're buying a plant for the equipment only. Makes no sense to buy if that's your intent. DFA buying plants to run em not close em.
Move equipment and accounts to the best maintained, best located plants, close down the others.
Fill their non union plants and sell off the land. No union less headache. Not enough volume to possibly keep all of these plants profitable. You will most definitely see plants close.
Again, Dean Foods using demand for milk as a reason for poor financial performance and ultimately bankruptcy was an excuse to try and placate shareholders. The number of plants that Dean Foods shut down more then offset the lessening demand. An inability to control distribution costs (every time a plant shut down the costs to distribute to the customers that that plant was servicing skyrocketed), a lack of diversity in products (focusing on low margin fluid and selling White Wave), and making bad decisions that drove away customers (see everything Ralphie ever did) were all far bigger contributors then lessening demand.
Makes sense for DFA to close DFA plants if the Dean Foods plants that they purchase are in better shape and in the same geographic area. Makes no sense for DFA to buy a Dean Foods plant for $14 million and then close it.
That's ridiculous if there was a need to make more product Dean's wouldnt be in bankruptcy. dont be so naive.
For the accounts that come with them to fill their plants to capacity.
Too close dilapidated dfa plants
Why would DFA buy plants intending to close them? Could have not bought them and they would have closed.