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. These jobs are being eliminated, not relocated, and Kellogg will be making more effective use of existing capacity in its manufacturing network.
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.”
About Kellogg Company
At Kellogg Company (NYSE: K), we are driven to enrich and delight the world through foods and brands that matter. With 2012 sales of $14.2 billion, Kellogg is the world’s leading cereal company; second largest producer of cookies, crackers and savory snacks; and a leading North American frozen foods company. Every day, our well-loved brands nourish families so they can flourish and thrive. These brands include Kellogg’s®, Keebler®, Special K®, Pringles®, Frosted Flakes®, Pop-Tarts®, Corn Flakes®, Rice Krispies®, Kashi®, Cheez-It®, Eggo®, Coco Pops®, Mini-Wheats®, and many more. Because we believe in the power of breakfast, we focus our philanthropic efforts on global hunger relief through our Breakfasts for Better Days™ initiative, providing 1 billion servings of cereal and snacks - more than half of which are breakfasts - to children and families in need by the end of 2016. To learn more about our responsible business leadership, foods that delight and how we strive to make a difference in our communities around the world, visit www.kelloggcompany.com.