General Mills to increase production at plant in New York state

General Mills to increase production at plant in New York state

General Mills is to increase production of breakfast cereals at a plant in the US.

The company is spending US$25m on a project that includes adding two production lines for Corn Chex and Honey Nut Chex at the site in Buffalo in New York state. The initiative will also see new packaging equipment installed and ingredient systems "upgraded", a statement released by state officials read.

The New York state government said the move allows General Mills to "retain" 417 full-time jobs at the site, which the food giant's oldest cereal plant in the US. The project is expected to be completed in May.

General Mills has received two grants, each worth $500,000. The funds come from Empire State Development, which helps finance development projects, and the New York Power Authority, a state public power organisation.

Last month, General Mills confirmed it would shut a factory in the US manufacturing soups sold under the Progresso brand.

General Mills has been making a series of changes to its manufacturing network in recent years, mostly moves to close facilities.

The news about the Progresso plant, first announced in July, came alongside other changes to General Mills' production network in the US and overseas. General Mills said it had struck a "tentative agreement" to sell a facility in Ohio, shut a plant in Brazil and transfer production out of another site in the Latin American country. The company also decided to leave the fruit snacks sector in China, which has led to a decision to end the manufacturing of the products in a plant in Nanjing in the east of the country.