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November 25, 2020

Mondelez mulling future of two US biscuit plants

Confectionery heavyweight Mondelez International is considering closing two US biscuit facilities, it has announced.

By Leonie Barrie

Confectionery heavyweight Mondelez International is considering closing two US biscuit facilities.

The Oreo owner said it plans to focus its US biscuit manufacturing in “strategically-located and operationally-advantaged sites”.

Mondelez is considering closing factories in Fair Lawn, New Jersey, and in Atlanta, Georgia sites, which the company said “are no longer strategic assets from a geographic footprint perspective”.

The closures would leave Mondelez with US biscuit facilities in Richmond, Virginia, Chicago/Naperville, Illinois, and Portland, Oregon. 

“These owned and-operated bakeries would remain the backbone of Mondelez International’s US biscuit manufacturing and would continue to make consumer-favourite Nabisco cookies and crackers,” it said.

External manufacturing will also continue.

The company said the Atlanta and Fair Lawn bakeries face “significant operational challenges, including ageing infrastructure and outdated production capabilities”. Mondelez said the plants “would require significant investment to bring them to the modernised state required for the future”.

Glen Walter, president of Mondelez’s operations in North America, said: “The way consumers are shopping and snacking is changing rapidly, and meeting these evolving needs requires us to make our products in more flexible, agile and efficient ways.” 

He added: “Given our understanding of demand and consumption patterns, we need to focus and allocate our resources to those sites and capabilities that are best able to meet our future needs.”

The proposed plant closures are subject to discussions between Mondelez and the unions that represent hourly employees at the two bakeries. 

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