Keebler adding capacity in Kentucky

by Eric Schroeder
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BATTLE CREEK, MICH. — Keebler Co., a division of Kellogg Co., has been approved to receive $2 million in tax incentives from the Kentucky Economic Development Finance Authority to purchase new equipment and add manufacturing capacity at its Florence, Ky., facility.

Kris Charles, a spokesperson for Kellogg, said construction on the new line will begin soon and is expected to be operational by the end of the year.

Kellogg’s Florence facility manufactures a variety of cookies, including Keebler Fudge Shoppe and Famous Amos. Ms. Charles said the plant has been in operation since 1969. In 1989, it became part of Keebler Co., and it became part of Kellogg in 2001, she said.

Earlier this year, Kellogg said it would 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 part of its Project K efficiency program. The Charlotte plant produces Famous Amos, Austin Sandwich Cremes and Iced Animals cookies.

Unveiled in November 2013, 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.
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