Kellogg closing one facility, expanding another

by Eric Schroeder
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The Clearfield plant makes frozen vegetarian foods for Kellogg's Morningstar Farms and Gardenburger brands.

BATTLE CREEK, MICH. — The Kellogg Co. continues to progress with Project K, its global, four-year efficiency and effectiveness program to help unlock cost savings to invest in its strategy and grow its business. The company’s latest moves announced this week included the closing of a frozen foods plant in Clearfield, Utah, and the expansion of a cereal plant in Belleville, Ont.

The Clearfield plant first opened in 1998 and makes a variety of frozen vegetarian foods. The facility is scheduled to close by the end of November 2015.

“We have evaluated our MorningStar Farms and Gardenburger Frozen Foods network to ensure that we are continuing to meet retailer and consumer demands,” said Alistair Hirst, senior vice-president, Global Supply Chain, Kellogg Co. “As a result, we are making changes to the network that will leave us with more capacity then we need. We carefully considered all of our options before making this difficult decision and it is in no way a reflection on our Clearfield employees. We greatly value their contributions and we are committed to helping them through their transitions.”

Meanwhile, Kellogg said it will expand its existing line in Belleville to accommodate growing demand for extruded — or shaped — cereal products such as Special K Protein and Froot Loops. The facility, which was built in 2007, currently makes a variety of ready-to-eat-cereals and has the space to expand capacity to absorb the additional production at the lowest cost, Kellogg said. Construction is scheduled to begin this summer, and the newly expanded line will be operational by mid-2016.

“One of the objectives of Project K is to build the supply chain of the future,” Mr. Hirst said. “We are working to ensure that we are operating the right number of plants — in the right locations — to better meet our current and future production needs and the evolving needs of our retail customers and consumers.”
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