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General Mills Closing Plants Incl. Progresso

22.07.2016 - Packaged- company General duction out of São Bernardo do Campo will be com- Mills Thursday announced plant closures, in- pleted in the first quarter of fiscal 2017. cluding Progresso factory in Vineland, amid weakening demand, affecting roughly Further, has decided to exit the fruit 1,400 jobs worldwide. The planned restructuring snacks business in China, resulting in the loss of in its global supply chain would impact its U.S., approximately 300 positions. The company will stop Brazil, and China operations. producing products at its Nanjing, China, facility during the first quarter of fiscal 2017, but will contin- In a statement, General Mills, which makes Chee- ue to make snacks. rios cereal and yogurt among other products, said its tentative decision to close its manufactur- The latest job cuts represent some 3.6 percent de- ing facility in Vineland, New Jersey would impact ap- crease in the workforce at General Mills, which has proximately 370 employees. The company plans to about 39,000 employees. transfer production to other U.S. facilities to elimi- Last month, General Mills reported a 12 percent nate excess soup capacity in its North America sup- drop in U.S. retail sales in its fourth quarter, even as ply chain. The closure, subject to negotiation with overall retail sales grew 2.8 percent. union officials, would be completed by the first quar- ter of fiscal 2018. General Mills operate the Vineland In recent years, other packaged-food companies facility since 2001. have reduced their factory capacity for cereal or soup on slowing demand, including Kellogg Co., and Further, the company agreed to sell its Martel, Ohio, Campbell Soup. Co. (dpa) facility, which manufactures dry baking mix prod- ucts, to Mennel Milling Co., which would impact ap- proximately 180 employees. The deal is expected to conclude by the second quarter of fiscal 2017, subject to negotiations with union officials. Mennel would act as a supplier to General Mills following the deal.

General Mills also has made a decision to close the Marília manufacturing facility and distribution center in Brazil, impacting approximately 420 impacted em- ployees. The facility closure and the transfer of pro- Page 1/1

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