Kellogg’s closing Omaha plant as it aims to streamline production
The cereal maker says it plans to increase production at its Belleville, Ontario plant.
August 6, 2024 | By MRO Magazine
WK Kellogg has announced plans to shut down its Omaha, NE plant by the end of 2026 as part of a broader reorganization effort and streamlining of production. This restructuring will also lead to a reduction of the company’s workforce by over 17 per cent, or about 550 employees.
Shares fell more than 2 per cent in early trading on August 6, as the cereal maker projected 2024 adjusted net sales to come in at the lower end of its prior forecast range of 1 per cent growth to 1 per cent decline.
The company reported in-line net sales of $672 million for the second quarter.
The reorganization, approved by the board on July 31, is expected to incur restructuring pretax charges of between $230 million and $270 million.
As part of the reorganization, WK Kellogg says it will reduce production at its Omaha and Memphis, Tennessee plants, with changes starting in late 2025.
The company plans to increase production at its Battle Creek, Michigan; Belleville, Ontario; and Lancaster, Pennsylvania plants and invest between $450 million and $500 million in supply chain improvements.
