lambweston jobs How Lamb Weston is Restructuring to Navigate Soft Demand and Supply Challenges

Welcome to a deep dive into the recent significant strategic moves undertaken by Lamb Weston Holdings, a leading global producer of frozen potato products. As investors and market observers, understanding such corporate actions is crucial, offering insights not only into the health of a specific company but also broader trends impacting the food processing sector and the economy at large. Today, we’re focusing on Lamb Weston’s comprehensive restructuring plan, a decision driven by challenging market dynamics, including persistent soft demand and a notable supply-demand imbalance in North America.

Imagine the frozen potato market like a vast ocean. Sometimes, demand is like a strong tide pulling ships out to sea, creating opportunity and needing ample supply to meet it. At other times, like now, the tide is weak, yet many ships (representing production capacity) are still built and ready to sail. This creates congestion and difficulty for everyone navigating those waters. Lamb Weston’s restructuring is their effort to re-chart their course, adjust their fleet size, and ensure they are better positioned for the future, even if it means making difficult decisions in the present.

This isn’t just a minor adjustment; it involves fundamental changes to their operational footprint, including the permanent closure of a key facility and a reduction in their global workforce. For you, whether you’re an investor holding Lamb Weston stock, considering it, or simply trying to understand the forces shaping major industries, grasping the details and the underlying rationale behind these actions is essential.

We’ll explore the specifics of the restructuring, the market conditions that necessitated these changes, the financial implications for the company, the significant human and economic impact on the affected community, and how Lamb Weston is approaching employee support. By the end, you should have a clearer picture of this strategic pivot and what it might signal for the company and the industry.

At the heart of Lamb Weston’s restructuring plan is a critical operational decision: the permanent closure of its potato processing facility located in Connell, Washington. This is not a temporary measure; it’s a definitive closure that significantly alters the company’s manufacturing landscape in North America.

For the Connell facility, this means an end to production, effective September 30, 2024, followed by a complete decommissioning and eventual demolition. While the land itself will be retained by Lamb Weston, the physical plant, which has been a part of the company’s infrastructure, will be removed. This step underscores the permanence of the decision and the company’s intention to consolidate operations elsewhere.

But the impact isn’t limited to just bricks and mortar. A processing facility is powered by its people. The closure of the Connell plant directly affects approximately 375 to 428 employees. These individuals represent a significant portion of the facility’s workforce, and their jobs are being eliminated as a direct consequence of the plant’s shutdown.

• The closure impacts about 375 to 428 employees, reflecting a significant human cost.
• The Connell facility’s production ceases permanently effective September 30, 2024.
• The land will be retained, but the plant will be demolished…

Beyond the Connell site, the restructuring plan extends to a broader reduction across Lamb Weston’s global workforce. The company announced its intention to eliminate approximately 4% of its total employees worldwide. Based on their reported employee count of over 10,700 as of July 2024, this global reduction amounts to approximately 428 positions across various functions and locations, including those at Connell.

Furthermore, part of this workforce rationalization involves the cancellation of certain new job positions that were previously unfilled. By not filling these open roles, Lamb Weston is further streamlining its staffing levels in alignment with current operational needs and market realities. This two-pronged approach – closing a major facility and implementing a broader workforce reduction – highlights the depth and scale of the restructuring effort.

These aren’t easy decisions for any company, particularly one with a long history in a specific region like Washington state, which is deeply tied to potato agriculture. The closure of a facility like Connell represents a significant shift, consolidating production and adjusting the company’s physical footprint to better match the prevailing economic climate and demand patterns.

The direct impact on the employees is, of course, paramount. Losing hundreds of jobs in a single location has ripple effects that extend far beyond the individuals themselves. Understanding the magnitude of these job cuts and the strategy behind them is crucial for evaluating the company’s overall health and future trajectory.

Every significant corporate restructuring is propelled by underlying forces, and Lamb Weston’s actions are no exception. The company has been transparent in citing the primary reasons behind this strategic shift, painting a picture of a challenging operating environment.

• Factors Driving Restructuring:
  • Persistent soft demand for frozen potato products.
  • Reduced traffic in restaurants and other foodservice channels.
  • Excess manufacturing capacity leading to higher costs.
  • Ongoing rising costs and inflation impacting margins.

The most frequently cited factor is the persistent soft market demand for frozen potato products. You might wonder, where does this soft demand come from? It’s primarily linked to reduced traffic in restaurants and other foodservice channels in North America. During periods of economic uncertainty or changing consumer habits, people may dine out less frequently or adjust their spending at restaurants, leading to lower demand for the volume of frozen fries and other potato products foodservice operators purchase.

Beyond foodservice, the company also noted softness in certain retail segments, although foodservice typically represents a larger portion of their sales volume and is thus more impactful. This decline in demand creates a situation where the existing manufacturing capacity, built to meet higher demand levels, becomes excessive. This leads directly to the second major driver: a significant supply-demand imbalance in North America.

Think back to our ocean analogy. If the tide (demand) is weak, but there are still too many ships (production capacity) trying to operate, you have excess capacity. Lamb Weston, like other players in the industry, invested in capacity based on previous growth expectations. When demand falters, this excess capacity leads to lower factory utilization rates, increased per-unit production costs, and greater competitive pressure.

Compounding these issues are ongoing rising costs and inflation. While inflation has moderated slightly from its peak, companies continue to grapple with elevated expenses for raw materials (like potatoes, though the market here can be complex), energy, labor, and transportation. These higher costs put pressure on profit margins, especially when paired with softer volumes and potentially less pricing power in a competitive market.

CEO Tom Werner has been vocal about these challenges, acknowledging that the market environment has been more difficult than anticipated and that he expects these headwinds to persist through fiscal year 2025. This strategic restructuring is therefore positioned not just as a reaction to current conditions but as a necessary step to optimize the company’s structure and cost base for the expected market reality over the next fiscal year and beyond.

By consolidating operations, Lamb Weston aims to improve its overall operational efficiency and increase the utilization of its remaining facilities. This can help lower the cost per unit produced, making the company more competitive even in a low-demand environment. The decision to close a specific plant, like Connell, is often based on factors such as its age, technological capabilities, location relative to raw materials and customers, and its contribution to the overall capacity imbalance.

In essence, the restructuring is a strategic adjustment to align the company’s operational scale and cost structure with the prevailing market conditions. It’s a move designed to weather the current economic storm and emerge with a leaner, more efficient operational model better suited for potentially slower growth or even contraction in certain market segments.

Financial Metrics	FY 2024 Projection	FY 2025 Projection
Net Income	Increased	Decreased significantly
Diluted EPS	Positive	Substantially reduced
Pre-tax charges	N/A	$200-$250 million

Corporate restructuring, especially one involving significant facility closures and job reductions, has substantial financial ramifications. Lamb Weston’s plan is projected to impact both their expenses in the short term and their profitability and cost structure in the longer term.

One of the most immediate and tangible impacts is on the company’s financial guidance for fiscal year 2025. Lamb Weston has significantly revised its targets downwards, particularly for key profitability metrics. While the company maintained its sales target, reflecting perhaps a stable level of pricing or expected mix, the outlook for earnings has been notably cut.

• Net Income: The company drastically lowered its projection for Net Income, indicating a less profitable year than previously anticipated.
• Diluted EPS (Earnings Per Share): Correspondingly, the outlook for Diluted EPS also saw a significant reduction. EPS is a crucial metric for investors, representing a company’s profit allocated to each outstanding share of common stock. A lower EPS outlook directly impacts investor sentiment and valuation models.

This revised guidance reflects the combined impact of the soft market conditions continuing to pressure volumes and margins, as well as the substantial costs associated with the restructuring itself. These costs, known as pre-tax charges, are incurred upfront to facilitate the changes.

However, the restructuring is also designed to yield financial benefits. Lamb Weston anticipates achieving significant pre-tax cost savings as a result of these actions. For fiscal year 2025, the company expects to realize approximately $55 million in cost savings. These savings stem from reduced operating expenses associated with closing the Connell plant, streamlining other operations, and the general workforce reduction.

Another area impacted is Capital Expenditure (CapEx). As a direct consequence of the restructuring plan, particularly the closure of the Connell facility and likely a re-evaluation of investment priorities, Lamb Weston is reducing its planned capital spending for fiscal year 2025 by $100 million. Lower CapEx can free up cash flow, although it also signals a potential slowdown in investment in future growth or capacity expansion, aligning with the theme of optimizing existing assets rather than building new ones in the current environment.

While these savings and reduced CapEx are positive outcomes aimed at improving future financial health, the immediate focus is often on the costs of the transition. Undertaking a restructuring of this magnitude is not without its costs. Companies incur significant expenses when closing facilities, laying off employees, and reconfiguring operations. Lamb Weston estimates that the restructuring plan will result in pre-tax charges ranging from $200 million to $250 million. These charges are one-time or short-term expenses that hit the company’s income statement and balance sheet.

What exactly do these charges cover? They typically include several components:

• Severance and Employee-Related Costs: This covers payments made to laid-off employees, continuation of benefits for a period, and costs associated with outplacement assistance. Severance packages are often calculated based on tenure and position. For the affected employees at Connell, they are receiving 60 days of severance pay, offering some transitional financial support.
• Asset Write-downs and Impairments: When a facility is closed or assets are idled, their book value may need to be reduced or written off if they are no longer expected to generate future economic benefit. Given the plan includes decommissioning and demolishing the Connell plant, significant asset write-downs are likely a major component of these charges.
• Inventory Write-downs: Sometimes, inventory held at or designated for a closing facility may need to be written down if it cannot be easily transferred or utilized elsewhere, or if its value has diminished.
• Other Costs: This can include expenses related to decommissioning the plant, demolition costs, contractual obligations, and professional fees associated with the restructuring process.

These upfront costs, ranging from $200 million to $250 million, are a primary reason for the lowered Net Income and EPS guidance for fiscal year 2025. While the cost savings ($55 million) and reduced CapEx ($100 million) provide future benefits, the large one-time charges significantly impact the current year’s reported profitability.

Beyond the corporate financials, the restructuring has a profound local economic impact, particularly on the city of Connell, Washington. Connell is a relatively small community, and a large employer like the Lamb Weston plant is often a cornerstone of its local economy. Losing hundreds of well-paying jobs in a community of this size creates significant challenges.

The impact isn’t just on the individuals and their families; it affects local businesses that relied on the plant and its employees, and it impacts city revenues, for example, from utility usage and potentially local taxes. The closure can reverberate through the community, affecting everything from retail stores to housing markets to school enrollment. Recognizing this substantial impact, there are collaborative efforts underway involving Lamb Weston, local government officials, and various state and regional agencies to support the displaced workforce. These efforts aim to mitigate the economic hardship for the affected employees and the community as much as possible.

When a large employer closes a facility and eliminates jobs, providing robust support for the affected employees is paramount. Lamb Weston, alongside community partners, has initiated several programs aimed at assisting the Connell workforce through this difficult transition.

The company is providing a severance package that includes 60 days of pay, offering a buffer period for employees to seek new employment. Beyond financial support, practical assistance is crucial. Outplacement assistance services are being offered to help employees with resume writing, job searching strategies, and interview preparation. These services can be invaluable for individuals who may not have had to seek new employment for many years.

In a coordinated effort to connect displaced workers with new opportunities, job fairs are being organized. For instance, a major job fair specifically for Lamb Weston employees was scheduled for October 21st. These events bring together multiple potential employers from the region, offering employees a chance to meet recruiters and learn about available positions across various industries.

Regional workforce development agencies, such as WorkSource, the Benton-Franklin Workforce Development Council, and the Tri-City Development Council (TRIDEC), are playing a vital role. These agencies specialize in connecting job seekers with resources and training programs. They are offering seminars and workshops covering topics like unemployment benefits, job search skills, and opportunities for retraining or further education. Specific dates for these seminars were provided, such as October 28th, 29th, and 31st, highlighting the structured approach to providing assistance.

The support extends even to specific groups within the workforce. For example, there was an event specifically organized for bus drivers on October 22nd, recognizing the unique needs and certifications of transportation professionals. This level of detail in the support plan suggests a comprehensive approach to address the diverse roles within the plant’s workforce.

Local government and community leaders have also been actively involved, working to attract new businesses to the area and exploring ways to support the economic vitality of Connell. While replacing a large employer like Lamb Weston is a significant challenge, the collaborative efforts demonstrate a commitment from multiple stakeholders to help the community recover and adapt.

These support initiatives are critical components of managing the human impact of corporate restructuring. While they cannot fully offset the distress of job loss, they provide necessary resources and pathways to help affected employees find new employment and navigate the transition period with greater security and dignity.

While news of plant closures and job cuts can cast a shadow, it’s also important to view these actions within the broader context of Lamb Weston as a company. Lamb Weston Holdings is a global leader in the frozen potato industry, holding the #1 position in the U.S. frozen potato market. With over 10,000 team members worldwide (before the recent reduction announcement), the company operates a large and complex global enterprise.

Understanding a company’s culture and values, even when they are undergoing difficult changes, provides a more complete picture. Lamb Weston highlights its company culture and values on its career pages, discussing its focus on its people, innovation, and being a leading food company. They showcase various career areas, suggesting a diverse workforce beyond the plant floor, including roles in engineering, sales, marketing, finance, and research & development.

Company Values	Focus Area
People	Supporting Team Members
Innovation	Advancing Industry Standards
Leadership in Food Industry	Maintaining Market Position

Mentioning innovation history, global presence, and the scale of operations serves to remind observers that Lamb Weston is a significant player with a long history and substantial resources. This restructuring, while painful, is presented as a strategic move by a large corporation navigating challenging business cycles, rather than a sign of imminent failure. It’s an optimization, albeit a severe one for those directly impacted, aimed at preserving the health and competitiveness of the overall organization.

The company’s benefits packages, often highlighted for potential employees (prior to the cuts), typically include elements like medical/dental/vision insurance, 401k with company match, paid time off, and development opportunities. While these aspects contrast sharply with the job loss news, they provide context on the company’s overall approach to its workforce during more stable times and form the basis for how severance and support packages are structured during transitions.

Washington state holds a significant position in the U.S. potato industry. It is one of the leading states in potato production and is particularly important for potatoes destined for processing into frozen products like french fries. The value of Washington’s potato crop is substantial, reaching $1.09 billion in 2023, and the state is a major exporter of frozen french fries, with exports totaling $1.1 billion.

Given this context, the closure of a major potato processing plant in Washington by a company like Lamb Weston is particularly noteworthy. It highlights that even in regions deeply tied to the industry, market forces can necessitate operational adjustments. The state’s robust agricultural base and processing infrastructure mean that while one plant is closing, there remains a significant presence of the potato industry, including other processing facilities operated by Lamb Weston and its competitors.

The long-term outlook for Lamb Weston post-restructuring depends heavily on the trajectory of market demand and the success of their operational efficiency initiatives. The projected cost savings and reduced CapEx are designed to make the company more resilient in a softer market. If demand recovers in fiscal year 2026 and beyond, a leaner operational structure could position Lamb Weston for improved profitability and potentially even future growth investments, though perhaps in different locations or technologies.

However, the immediate outlook, as reflected in the lowered FY2025 guidance, indicates that the company expects the market headwinds to persist. Investors will be closely watching future quarterly reports for signs that the restructuring is yielding the expected cost savings and that operational efficiencies are improving. They will also monitor broader economic indicators, such as consumer spending on foodservice, for signs of recovering demand.

The decommissioning and demolition of the Connell plant and the retention of the land might suggest potential long-term plans for the site, though nothing has been announced. It could potentially be used for storage, distribution, or perhaps even a different type of facility in the distant future, but for now, it signifies a permanent reduction in processing capacity at that specific location.

Ultimately, Lamb Weston’s restructuring is a strategic adaptation to challenging market conditions. It’s a complex process with significant financial and human costs, but one the company believes is necessary to optimize its operations and maintain competitiveness in the global frozen potato market. For investors and observers, it serves as a case study in how major companies navigate periods of demand softness and supply imbalances through decisive, albeit difficult, strategic adjustments.

What other factors do you think companies consider when deciding which plant to close?

A key objective driving Lamb Weston’s restructuring is the pursuit of improved operational efficiency and the optimization of their manufacturing assets. When a company faces excess capacity due to reduced demand, it means its existing factories are not running at full potential. This lower utilization rate increases the cost per unit of product manufactured because fixed costs (like rent, property taxes, depreciation, and some overhead labor) are spread over fewer units.

By closing the least efficient or most costly plant (in this case, Connell) and potentially consolidating production into other facilities, Lamb Weston aims to increase the utilization rates at the remaining sites. Running a factory closer to its full capacity generally lowers the per-unit production cost, improving gross margins and overall profitability, even if total sales volumes remain somewhat depressed.

This optimization isn’t just about shutting down a facility; it often involves reviewing production schedules, supply chain logistics, and potentially investing in minor upgrades at the remaining plants to handle increased volume or diversify product lines. The $100 million reduction in Capital Expenditure for FY2025 suggests that while major new investments are on hold, there might still be targeted spending to enhance the capabilities of existing facilities.

Moreover, asset optimization involves ensuring that capital is deployed effectively. Reducing CapEx by $100 million frees up capital that can be used for other purposes, such as debt reduction, share buybacks, or simply strengthening the balance sheet during uncertain times. It signals a shift in focus from expansion to consolidation and efficiency.

This strategic emphasis on efficiency is particularly relevant in an inflationary environment. By lowering internal operating costs through better asset utilization and workforce rationalization, Lamb Weston can potentially mitigate some of the pressure from rising external costs for inputs, energy, and logistics. It’s a crucial lever for maintaining profitability when pricing power might be limited by soft demand.

For investors, seeing a company focus on operational efficiency and asset optimization during a downturn can be a positive sign of prudent management. It indicates a commitment to controlling costs and maximizing the output from their existing resources, positioning them to potentially capture greater leverage when market conditions eventually improve.

While we’ve discussed the numbers – 375 to 428 jobs, $200-250 million in charges – it’s vital to remember that behind these figures are individuals and families. The closure of the Connell plant represents a significant disruption to their lives, impacting their livelihoods, communities, and future plans.

Stories emerging from the Connell community highlight the deep ties between the plant and its workforce. Many employees have worked at the facility for decades, forming close bonds and relying on the plant for stable employment and benefits. The news undoubtedly brought anxiety and uncertainty.

The efforts of local agencies and community leaders in coordinating support services underscore the recognition of this human impact. Hearing about specific events like the job fair on October 21st or the seminars offered by WorkSource and other agencies provides a tangible sense of the support network being mobilized. These initiatives are not just about statistics; they are about providing practical help to people facing a difficult transition.

Consider the bus drivers event on October 22nd. This specific focus shows an understanding that different roles have different needs and potentially different avenues for future employment. A bus driver’s skillset, while valuable, might require different job search strategies or connections than, say, a processing line operator or a maintenance technician.

The 60 days of severance pay offers a crucial financial bridge, allowing employees time to search for new jobs without immediate income loss. However, finding comparable employment in a smaller community like Connell can be challenging, and the long-term economic health of the area will depend on attracting new businesses and diversifying the local economy.

These personal stories and community responses are an important, often less discussed, aspect of corporate restructuring. For investors, while the focus is primarily on financial outcomes, understanding how a company handles workforce reductions and community impact can also speak to its long-term reputation and its ability to operate responsibly, which can indirectly influence its brand and stakeholder relationships.

Ultimately, the success of the employee support efforts will be measured by how quickly and effectively the displaced workers are able to find new, sustainable employment and how well the community of Connell adapts to the loss of a major employer.

Lamb Weston’s restructuring provides several valuable lessons for you, whether you are a long-term investor or a short-term trader navigating the markets.

• Firstly, it underscores the importance of looking beyond top-line sales figures and delving into underlying metrics like volume, price/mix, and operating costs. While Lamb Weston’s sales target for FY2025 remained unchanged, the significant cuts to Net Income and EPS guidance clearly signaled operational challenges. Understanding the difference between revenue stability and profitability pressure is key.
• Secondly, it highlights the cyclical nature of some industries and the impact of macroeconomic factors like inflation and changes in consumer behavior (e.g., foodservice traffic). Companies in these sectors need to be agile and willing to make strategic adjustments when market conditions shift. For investors, this means assessing a company’s ability to adapt and manage costs during downturns.
• Thirdly, restructuring is a common corporate response to imbalance and inefficiency. While often involving upfront costs (the $200-250 million charges), the goal is to achieve long-term benefits (the $55 million annual savings and $100 million CapEx reduction). Investors need to evaluate if the anticipated long-term benefits justify the short-term pain and costs.
• Fourthly, pay attention to management commentary. CEO Tom Werner’s remarks about the persistent challenging market environment for fiscal 2025 provided crucial context for the restructuring decision. Management guidance, while subject to change, offers insight into the company’s internal assessment of the situation and their planned response.
• Finally, major operational changes like plant closures can have significant local and regional impacts. While not always directly affecting the stock price in the long run, understanding these impacts can provide a more complete picture of the company’s operations and its role within its operating communities. It also reminds us that corporate decisions have real-world consequences for individuals and places.

By studying cases like Lamb Weston’s restructuring, you gain a deeper understanding of how companies respond to adversity, how operational challenges translate into financial outcomes, and what signals to look for when evaluating companies in similar sectors. This knowledge is crucial for making informed investment and trading decisions, helping you navigate the complexities of the market with greater confidence.

Following a major restructuring announcement like Lamb Weston’s, investors and market analysts turn their attention to signals that indicate the success or failure of the plan and the future trajectory of the company. What should you be watching for in the coming quarters?

• Financial Performance: Future earnings reports will be crucial. Look for whether the company is achieving the projected $55 million in cost savings in fiscal year 2025. Are gross margins improving as a result of better factory utilization? Is Net Income and EPS tracking towards the revised guidance or showing signs of potential upside or downside?
• Market Demand Trends: Keep an eye on broader economic data related to foodservice and restaurant traffic in North America. Is demand for frozen potato products showing any signs of recovery? A rebound in demand would significantly improve the operating environment for Lamb Weston and other frozen potato producers.
• Supply-Demand Balance: While Lamb Weston is taking steps to reduce its capacity, monitor whether the overall industry is also adjusting production levels. A more balanced market environment will reduce competitive pressure and potentially allow for better pricing power.
• Execution of the Plan: Is the company successfully executing the closure of the Connell plant and the broader workforce reduction on schedule? Are the associated pre-tax charges falling within the estimated $200-$250 million range, or are there unexpected costs?
• Employee and Community Transition: While less directly tied to daily stock movements, the success of the employee support efforts and the resilience of the Connell community can provide insights into the company’s operational management and its ability to handle complex transitions smoothly.
• Management Commentary: Pay close attention to conference calls and investor presentations. What is management saying about the market environment, the progress of the restructuring, and their outlook beyond fiscal year 2025?

These signals will help you assess whether Lamb Weston’s strategic restructuring is effectively addressing the challenges it faces and whether the company is successfully positioning itself for improved performance in the future. Major corporate actions take time to yield full results, and patience is often required when evaluating their impact.

Understanding these key performance indicators and external market factors will empower you to make more informed decisions about your involvement with Lamb Weston stock, or to apply these analytical frameworks to other companies undergoing similar transitions.

In conclusion, Lamb Weston’s announcement of a significant restructuring, including the permanent closure of its Connell, Washington plant and a reduction of approximately 4% of its global workforce, is a clear indication of the challenging environment currently facing the frozen potato industry in North America. Driven by persistent soft demand, a resulting supply-demand imbalance, and ongoing inflationary pressures, these actions are a strategic response aimed at optimizing the company’s operational footprint and cost structure.

While the restructuring entails substantial upfront pre-tax charges estimated at $200-$250 million and has led to a significant downward revision in the company’s fiscal year 2025 profit targets (Net Income and Diluted EPS), it is also projected to generate approximately $55 million in annual pre-tax cost savings and a $100 million reduction in planned capital expenditure for FY2025. These anticipated savings are crucial for improving operational efficiency and potentially enhancing profitability in the future.

The closure of the Connell plant represents a significant economic challenge for the local community and results in the loss of hundreds of jobs. Recognizing this impact, Lamb Weston, in collaboration with local government and workforce development agencies, has implemented various support programs, including severance pay, outplacement assistance, and job fairs, to help affected employees navigate this transition.

Viewing Lamb Weston’s actions within the broader context of adjustments being made by other companies in the food processing sector suggests that this restructuring is part of an industry-wide effort to align manufacturing capacity and workforce size with current market realities. It underscores the need for companies to be agile and willing to make difficult decisions to remain competitive.

For you, as an investor or market observer, this case study highlights the importance of analyzing the underlying drivers of corporate performance, understanding the financial implications of strategic decisions, and recognizing the impact of macroeconomic factors on specific industries. By following the company’s progress post-restructuring and monitoring key market indicators, you can gain valuable insights that inform your approach to evaluating similar situations in the future.

While the immediate period involves navigating uncertainty and costs, Lamb Weston’s restructuring is a proactive measure designed to strengthen its financial position and competitiveness in the long term. Its success will depend on the execution of the plan and the eventual recovery of market demand.