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Kellogg will spend a cumulative pre-tax amount of approximately $45 million to increase productivity by shifting production to optimal lines across its North American supply chain network.
According to Kellogg spokesperson Kris Bahner, some of their locations are better-performing and more cost-effective, so they should shift capacity there to increase efficiency, cut costs, and be more competitive.
Productivity improvements are expected by 2023, with the overall project set to be fundamentally completed by early 2024.
No production facilities are set to close as a result.
The investment is subject to collective bargaining obligations, and Kellogg is setting aside $4 million to cover employee-related costs, such as including severance and other termination benefits.
