Sector News

Kraft Heinz closing 7 factories, cutting 2,600 jobs

November 5, 2015
Food & Drink

Kraft Heinz announced Wednesday that it would be closing seven factories and cutting about 2,600 jobs.

The closing factories are in Fullerton, California; San Leandro, California; Federalsburg, Maryland; St. Marys, Ontario, Canada; Campbell, New York; Lehigh Valley, Pennsylvania; and Madison, Wisconsin, Michael Mullen SVP of corporate and government affairs, said in a statement.

Over the next 12-24 months, he said, production in those locations will shift to other existing factories in North America.
He said the decision to close the factories came after “an extensive review of the Kraft Heinz North American supply chain footprint, capabilities and capacity utilization.”

Calling the move “difficult but necessary,” Mullen said the closures would cut approximately 2,600 positions from the company’s North American factory-based employee population.

The company said it also will close its meat processing plant in Davenport, Iowa, and move production to a new facility that will be built nearby.
Kraft Heinz will invest “hundreds of millions of dollars in improving capacity utilization and modernizing many of our facilities with the installation of state-of-the-art production lines,” Mullen added in his statement.
Warren Buffett’s Berkshire Hathaway owns about 26.8 percent of shares outstanding in the company, according to the latest available data.

Kraft Heinz formed from the merger of Kraft and Heinz this year. The new company, co-headquartered in Chicago and Pittsburgh, announced in August that 2,500 non-factory jobs would be cut following the merger.

Source: CNBC

comments closed

Related News

November 28, 2021

“Free from” trends take on myriad of meanings as health and environmental concerns come into sharper focus

Food & Drink

Free-from is becoming much more mainstream, moving beyond food allergens and intolerances. While it’s still vital to innovate products for lactose intolerance, gluten allergies and so forth, the umbrella term of free-from has taken on many different meanings.

November 28, 2021

Arla Foods Ingredients unveils milk fractionation tech for infant, sports and medical nutrition

Food & Drink

Arla Foods Ingredients (AFI) is targeting infant formula, sports nutrition and medical nutrition with its new patented milk fractionation technology that separates milk proteins from whey, bypassing the need to make cheese. The Denmark-based company says this move enables scientists, nutritionists and health professionals to create “next-generation” dairy products.

November 28, 2021

Oatly opens first Chinese production facility

Food & Drink

Located in Ma’anshan, Anhui province, the facility has the potential to produce an estimated 150 million litres of oat-based products annually at full capacity. The opening comes just a few months after Oatly – which claims to have established a new Chinese character for ‘plant-based milk’ – inaugurated its first Asian factory in Singapore.

Send this to a friend