US: Kraft to shut ingredients plant, 200 jobs axed
Kraft is to close its manufacturing plant in Massachusetts
Kraft Foods Group has announced 200 jobs are at risk as it plans to close a plant making ingredients in Massachusetts.
The facility in Woburn makes gelatin, flavourings and ingredients. Kraft said the site will close by the end of 2016.
Steve Yucknut, vice president of integrated supply chain for Kraft's meals and desserts business unit, said the closure was "difficult" but admitted the company did not think "long-term investments in this facility make strategic sense".
Yucknut added: "We know external vendors already have the upgraded technology and optimised logistics to drive significant cost efficiencies."
Northfield, Ill. – June 19, 2014 – Kraft Foods Group today announced that it plans to close its Woburn, Mass. manufacturing facility by the end of 2016.
“We are always reviewing our manufacturing network and looking for ways to improve the efficiency and effectiveness of our operations,” said Steve Yucknut, Vice President of Integrated Supply Chain for Kraft’s Meals & Desserts business unit.
“Closing the Woburn facility is difficult for us. But in looking at our operations holistically, we don’t think that long-term investments in this facility make strategic sense for our network. We know external vendors already have the upgraded technology and optimized logistics to drive significant cost efficiencies,” said Yucknut.
“This is not a reflection on our employees in Woburn. This is a business decision that has nothing to do with their performance, which has been excellent. We are committed to treating our employees with respect and dignity and will be working with them through this transition.”
The facility makes gelatin, flavorings and ingredients. The 200 employees were informed of the company’s plans earlier today. The facility was founded in 1919 as Atlantic Gelatin and later purchased by General Foods. General Foods was later combined with Kraft to become Kraft Foods.
Original source: Kraft Foods
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