Kraft Heinz announces plans to close 7 factories
November 4, 2015
By Manufacturing AUTOMATION
Nov. 4, 2015 – The Associated Press is reporting that Kraft Heinz will close seven factories in Canada and the U.S. over the next two years as part of a downsizing plan that will shed 2,600 jobs.
The affected Canadian plant is located in St. Marys, Ont., while the six U.S. ones are located in California, Maryland, New York Pennsylvania and Wisconsin. According to AP, the closures will occur in a staged process over the next 12 to 24 months.
In addition, the company said it would close its existing meat processing plant in Davenport, Iowa, and move production to a new plant to be built several miles away.
“Our decision to consolidate manufacturing across the Kraft Heinz North American network is a critical step in our plan to eliminate excess capacity and reduce operational redundancies for the new combined company,” Michael Mullen, senior vice-president of corporate and government affairs. “This will make Kraft Heinz more globally competitive and accelerate the company’s future growth. We have reached this difficult but necessary decision after thoroughly exploring extensive alternatives and options.”
Kraft Heinz formed from the merger of Kraft and Heinz earlier this year. The new company announced in August that 2,500 non-factory jobs would be cut following the merger.
— With files from Ryan J. Foley, The Associated Press