US-based global food company General Mills has announced that it will close its yoghurt manufacturing facility in Carson, California.

The move is said to be part of the company’s restructuring programme, which was approved this month.

General Mills intends to focus on driving efficiencies in targeted areas of its global supply chain by consolidating production and optimising labour, logistics and manufacturing platforms.

The Minnesota-based company offers four yoghurt brands, including Yoplait, Mountain High, Liberté and Annie’s.

“The company anticipates that the closure of the facility would incur an expense of nearly $130m.”

General Mills has not disclosed the number of employees that will be affected by the closure of the Carson facility.

The company anticipates that the closure of the facility would incur an expense of nearly $130m, including $25m for severance and approximately $105m in exit costs, as well as project-related costs such as asset write-offs.

Additionally, the company said that it expects to pay about $30m of net cash related to these actions, which are expected to be completed by the end of fiscal 2021.

Over the past 12 months, the company’s share value is said to have dropped by 22%.

In July 2017, General Mills announced that it wants to focus on expanding its cereal venture with Nestlé, as well as its yoghurt business through product development.

At that time, General Mills CEO Jeff Harmening told investors that the company identified key priorities for the 2018 fiscal year.

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