Omega Protein, a US-based omega-3 fish oil, fishmeal and organic fish solubles producer, has unveiled plans to restructure its Gulf of Mexico operations, to increase efficiencies.
As part of the plan, the company is set to close its menhaden fish processing plant in Cameron, Louisiana and redeploy certain vessels from the site.
The move is part of the company's efforts to improve financial performance by increasing the utilization of its existing assets and reducing maintenance-related capital expenditures.
Following an intensive review of operations, Omega believes that consolidation of its two western Gulf of Mexico facilities into a single facility in Abbeville, Louisiana would help it enhance operating and capital efficiencies.
Omega Protein president and CEO Bret Scholtes said, "Going forward, we expect to continue to experience robust demand for our products and our team remains focused on enhancing control over the manufacturing process, creating avenues for organic growth, and developing additional value-added products."
Affected employees at the Cameron facility will be offered financial assistance in addition to staffing placement opportunities, the company noted.
The closure will commence immediately through the next 12 to 24 months.
The company anticipates impairment, lease termination and employee-related charges of $8m to $12m, primarily in the fourth quarter of 2013.
