USA: Kellogg considering closing two bakeries
US cereal maker Kellogg is considering closing its Keebler bakeries in Macon, Georgia and Des Plaines, Illinois in the interests of rationalisation.
The move would improve operational efficiency and to better position the company for future growth, it said.
"We are committed to continual improvement," said Brad Davidson, Kellogg's president of US snacks. "Our snacks business achieved solid growth in 2004. This initiative would provide the increased efficiency necessary to support future growth in today's competitive environment."
If it is carried out, up-front costs associated with the capacity rationalization are expected to be approximately $120m, much of which will be incurred during 2005.
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