Kellogg to close Charlotte cookie plant
by Monica Watrous
BATTLE CREEK, MICH. — As part of its recently announced Project K efficiency program, the Kellogg Co. will close its snacks plant in Charlotte, N.C., and eliminate two production lines at its snacks plant in Cincinnati by the end of the year.
“As with any project that impacts people, these are difficult decisions,” said John Bryant, president and chief executive officer. “We are very mindful of the impact these changes will have – particularly to our employees. As our employees and others would expect from Kellogg, we will help those who are impacted through their transitions.”
Unveiled in November, Project K is Kellogg’s four-year plan to strengthen business in core markets, increase growth in developing and emerging markets and drive increased value-added innovation. The program is expected to result in the elimination of about 7% of Kellogg’s global workforce over the next four years and entails spending as much as $1.4 billion by the end of 2017 to relocate production lines and globally integrate internal business services.
In December, the company said it would close a ready-to-eat cereal plant in London, Ont., and a snacks plant in Charmhaven, Australia, by the end of 2014. Kellogg also plans to expand its cereals and snacks facility in Rayong, Thailand, by early 2015, and is building a new snacks plant in Bandar Estek, Negeri Sembilin, Malaysia.
“We have a compelling business need to better align our assets with marketplace trends and customer requirements,” Mr. Bryant said. “To that end, we are taking action to ensure our manufacturing network is operating the right number of plants and production lines — in the right locations — to better meet current and future production needs and the evolving needs of our customers.”
The Charlotte plant produces Famous Amos, Austin Sandwich Cremes and Iced Animals cookies.