US cereal group Post Foods has announced plans to potentially close its manufacturing facility in Modesto in California in a bid to improve efficiency.
The company said today (21 March) the closure will put it in a “better position” for future growth. Post said it will be “soliciting input” from the union representing its employees at the site before it makes a final decision, expected by the end of April.
“We are committed to addressing our excess capacity,” said president and COO Terence Block. “This initiative, if we proceed, would provide the increased efficiency necessary to compete in today’s environment.”
The Modesto plant employs around 140 staff. Production is expected to be moved to other Post manufacturing facilities within its existing network if the plant does close.
