US cereal giant Kellogg has confirmed plans to delay its US$22.5m construction of an office building, which was to be located in downtown Battle Creek.

"We have made the difficult, but necessary, decision to delay our downtown Battle Creek office tower construction project," a spokesperson for the company told just-food today (2 March).

The new office building would have enabled Kellogg to consolidate its employees in downtown Battle Creek, moving the approximately 600 employees from an office building a few miles away to a new building across the street from the company's headquarters.

"The reason for this delay is our need to manage costs in a challenging economy. While our business continues to perform according to plan, we are concerned that a capital project of this magnitude may not be prudent at this time," the spokesperson said.

 However, Kellogg has not yet abandoned the project entirely.

"We hope to make a decision about this project by mid-year. In the meantime, we'll continue to evaluate our options, monitor the economy and look for signs of recovery. By deciding not to begin construction this spring, as originally planned, the next opportunity would be in the spring of 2010."