Euro procurement hub adds $40m cost to Heinz

H.J. Heinz Company has revealed that setting up a procurement hub in Europe contributed to a $40 million cost on its balance sheet.

The food company yesterday reported the charge of $40.5m in its financial results for the quarter ended July 27, 2011.

It was described as, "Costs associated with targeted workforce reductions, asset write-offs associated with factory closures and other implementation costs in order to increase manufacturing effectiveness and accelerate productivity on a global scale. Other implementation costs primarily include professional fees and relocation costs for the establishment of a European supply chain hub in the Netherlands."

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