Hostess Brands LLC is to close a plant in Illinois as the rejuvenated US cake maker seeks to drive efficiency in the face of fierce competition.
The company, formed last year after the bankruptcy of the old Hostess Brands in 2012, has decided to shut its Schiller Park site in October. The plant was where Hostess flagship brand Twinkies was first produced in 1930.
The move will affect around 400 staff. Some 85 of the workers are employed “on a contingent basis”, Hostess told just-food.
“Hostess has brought these great brands back to the marketplace. We have invested heavily in all facilities to improve worker conditions and efficiencies in a very highly competitive environment and marketplace,” Hostess CEO Bill Toler said.
“While the old Hostess company was in bankruptcy, many competitors took over the shelves and are tenaciously defending their business and thus we must be highly efficient and technologically advanced to compete. As a result, we have invested in more efficient production capabilities and need to streamline our manufacturing infrastructure and protect our ability to compete.”
Hostess owns three other sites in the US. In December, it announced plans to increase capacity at a plant in Kansas.