Convenience food producer Greencore has announced plans to build a new sandwich manufacturing facility in the US.

The manufacturer said yesterday (19 March) the facility in Quonset, Rhode Island, will enable the business to service its existing markets in New England, and develop future business opportunities closer to New York.

Following the launch of the 100,000sq ft site, the group will close its existing facilities in Newburyport and Brockton, Massachusetts on a phased basis between April and September 2015.

Greencore said the new site will have “sufficient capacity to support ongoing growth” and would result in material manufacturing process and distribution savings of £5m.

Patrick Coveney, chief executive, said: “This investment will significantly enhance our capability and capacity to serve the sandwich market in the north-eastern region of the US, and will also enable us to drive further growth with current customers.”

The cost of construction and fit-out of the new facility is estimated at £20m, which the business said would be incurred over the next 15 months.

The group said it would also recognise a non-cash impairment of assets of £8m in relation to the closure of the Newburyport and Brockton sites, as well as cash exit and start-up costs estimated at £3m.

The new site will employ 370 people when it opens in the spring of 2015.