ANDERSON — The closing of a Nestle plant in Indianapolis by the end of the year is not expected to have any impact on its Anderson operations.
In a letter to the Indiana Department of Workforce Development, Nestle announced plans to close the Nestle Sale and Supply Chain Frozen DSD operation on South Keystone Avenue in Indianapolis by the end of the year.
The letter to the state indicates that 172 employees will be affected by the closure which is scheduled to be final on Dec. 31, 2019.
Employees in the Nestle Retail Sales Workforce and Nestle Deep Frozen Supply Chain are affected by the restructuring.
“My sense is there won’t be any impact on the Anderson operations,” Greg Winkler, executive director of the Anderson Economic Development Department, said Tuesday.
Winkler said the Anderson plant is part of the Nestle Beverage Division and the closure is dealing with dessert production.
“There are different divisions of the company,” he said. “My understanding is that it’s an older facility being closed.”
Nestle officials didn’t return telephone calls seeking comment.
Earlier this year Nestle received a building permit from the city of Anderson for the construction of a basement under an existing building at a cost of $1 million.
Winkler said he wouldn’t speculate on that work.
“There has been a lot of work done over the past few years in which Nestle has not requested a tax abatement,” he said.
Since locating in Anderson in 2009 the company has expanded its local operations at least seven times.
The Anderson City Council in 2017 approved a requested tax abatement on an investment of $79.5 million in new equipment that will create an additional 30 jobs with an average annual salary of $75,000. The average hourly wage would be $36.06.
Josh Malancuk, representing Nestle, said in 2017 that since Nestle opened in Anderson in 2009, the company has invested more than $800 million in the facility.
He said the company currently employs 774 people at the Anderson plant.
The Nestle plant in Anderson manufactures Coffee Mate creamer and Boost nutritional drinks.
Last month Nestle announced it was cutting 40 positions at the Edy’s Grand ice cream production and distribution facility in Fort Wayne.