Kellogg Company today announced several changes to optimize its global manufacturing network as part of the company’s recently announced Project K four-year efficiency and effectiveness program. Project K will unlock cost savings that Kellogg will invest in its strategy and grow its business. Through Project K, Kellogg is strengthening its existing business in core markets, increasing growth in developing and emerging markets, and driving increased value-added innovation.
Supply Chain infrastructure changes announced today include:
• Closure of the Snacks plant in Charmhaven, Australia
• Expansion of the Rayong, Thailand cereal and snacks plant, and
• Closure of the ready-to-eat cereal plant in London, Ontario, Canada.
“As with any project of this scope and one that impacts people, these are difficult decisions,” said John Bryant, President and CEO, Kellogg Company. “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.”
The London plant is expected to close by the end of 2014 and the Charmhaven plant is expected to close by late 2014. The Rayong expansion will be fully operational by early 2015.
“We have a compelling business need to better align our assets with marketplace trends and customer requirements,” said Bryant. “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.”
