Mondelez to strengthen biscuit production capabilities in US

Food and beverage maker Mondelez International has announced plans to strengthen its biscuit manufacturing capabilities in the US with an investment of over $130m.

As part of the plan, the company will deploy new manufacturing technology and capabilities at its facilities in Fair Lawn, New Jersey, and Richmond, Virginia.

The investment is in line with the company’s efforts to redesign its manufacturing network and create an integrated supply chain organisation capable of delivering a demonstrable advantage, while generating savings that can be reinvested for growth.

It will focus primarily on the cookie and cracker brands and product categories.

To support the expansion plans, Mondelez will consolidate its footprint on the East Coast, which will result in the closure of its Philadelphia bakery by early 2015.

Mondelez stated that the Philadelphia site produces a limited number of core products and its role has changed over time within the company’s biscuit manufacturing network.

The closure-affected staff have been informed about the proposed plans.

Mondelez International North America Integrated Supply Chain, Biscuits vice president Cindy Waggoner said that the investment offers an opportunity to further improve the overall effectiveness, efficiency and competitiveness of the company’s manufacturing network.

"It’s always a difficult decision to close a manufacturing facility, especially one like the Philadelphia bakery, which has been part of our organisation and the community for many years," Waggoner added.

"We’re making this announcement almost a full year in advance of the planned closure to help provide a smooth transition."

In recent months, Mondelez announced a series of investments, including £75m in its Birmingham chocolate plant and $190m to establish a chocolate manufacturing facility in Andhra Pradesh, India.