Kellogg’s to close snacks manufacturing plant in North Carolina

US-based food company Kellogg’s is set to shut its snacks manufacturing plant in Charlotte, North Carolina, in line with efforts to optimise its North American manufacturing network.

The company also plans to cease production of two lines at its snack facility in Cincinnati, Ohio.

The Charlotte plant is expected to be shut by the end of 2014, and the Cincinnati lines will also be eliminated by that time.

The closures are part of the company’s recently announced Project K, a four-year efficiency and effectiveness programme to achieve cost savings, strengthen existing businesses in core and emerging markets and drive increased value-added innovation.

Kellogg’s president and CEO John Bryant said, "As with any project that impacts people, these are difficult decisions."

"As our employees and others would expect from Kellogg, we will help those who are impacted through their transitions," he added.

Bryant said that the company has a compelling business need to better align its assets with marketplace trends and customer requirements.

He added, "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."

Last month, Kellogg’s announced that it will establish a snack manufacturing plant in Bandar Estek, Negeri Sembilin, Malaysia, to increase its Pringles production capacity and capability in Asia-Pacific.

In 2013, as part of the Project K initiative, the company outlined plans to close a snacks plant in Charmhaven, Australia, expand a cereal and snacks plant in Thailand and shut a ready-to-eat cereal plant in Ontario, Canada.