Adhesives manufacturer H.B. Fuller is preparing to undergo a significant global footprint reduction for both production and warehousing.

Alongside reporting its 2024 financial results on Jan. 15, the St. Paul, MN-based company shared broadstrokes of a manufacturing and supply chain footprint consolidation aimed to generate about $75 million in annual cost savings.

The measures include a multi-year plan to slash H.B. Fuller’s number of global manufacturing facilities from its current 82 to a target of 55 when completed in 2030. Meanwhile, the company plans to cut its North American warehouse count from 55 to 10 by the end of 2027.

In a Jan. 16 earnings call, company President and CEO Celeste Mastin said H.B. Fuller expects to sell or close 16 facilities by the end of 2025.

The company expects to generate $5 million in savings during 2025, which is in addition to the $8 million in recurring annual savings from the restructuring plan H.B. Fuller announced back in March 2023 that is on track to deliver annualized savings of $45 million by the end of 2025.

Meanwhile, the company expects to invest about $150 million in incremental capital through 2030 in step with the expanded plan.

“Our manufacturing footprint consolidation, coupled with our planning and logistics reorganization, are important steps in our strategic plan to achieve an EBITDA margin consistently greater than 20%,” Mastin said in a Jan. 15 news release. “These actions will not only reduce costs through improved capacity utilization, they will also enable us to better serve our customers and reduce future capital expenditure requirements.”

The footprint downsizing news follows H.B. Fuller’s December sale of its flooring business to private equity firm Pacific Avenue Capital Partners, which involved six production plants. That divestment was part of H.B. Fuller’s plans to realign its building and construction units.

H.B. Fuller reported 2024 total sales of $3.57 billion that grew 1.6% annually, with organic revenue down 1.0% amid a 2.7-percentage point impact from unfavorable pricing, partially offset by a 1.7-point impact from higher volume. Gross margin for the year was 29.8%, with adjusted margin of 30.3% up 90 basis points annually. Net profit of $130 million fell 10.1% and adjusted EBIDTA of $594 million improved 2.2%.