Kellogg’s plans to expand North Carolina facility

American food manufacturer Kellogg’s is planning to expand its Cary facility in North Carolina with an investment of $19.5m.

Cary will provide more than $200,000 in incentives to the company for expansion of the plant.

Kellogg’s spokesperson Kris Charles told Newsobserver.com: "Kellogg’s is currently considering an investment to expand production capacity at our Cary snacks plant.

"We do not anticipate in increase in headcount as a result of this potential expansion."

The company expects to get back the investment within three years.

Cary added a condition for granting incentives, according to which the company must invest $19.5m by the end of 2017. Incentives will also be granted in two installments on achieving significant milestones.

This facility was intially owned by Austin Quality Foods, which sold it to Keebler Foods in 2000 for $250m. Keebler sold the facility to Kellogg’s in 2001.

In 2009, the Cary facility cut several jobs under a company wide employee reduction strategy.

In November, the company announced it will build on its commitment to animal welfare by sourcing only cage-free eggs for its foods and eliminate gestation stalls from its pork supply chain by the end of 2025.

In September, Kellogg’s acquired Egyptian cereal maker Mass Food Group for $50m, under its growth strategy to tap emerging markets.