Post Holdings, a US-based producer of ready-to-eat cereal products, has announced its decision to close its manufacturing plant in Modesto, California.
The company noted that it held discussions with the union representing hourly employees over the plant closure.
Currently, the Modesto facility employs 140 people. The shifting of production capabilities and closure of the plant is scheduled to be completed by the end of September 2014.
Following the completion of the transfer and commencement of production at other facilities, which is estimated to require capital expenditures of approximately $29.8m, the company expects to achieve net pretax annual cash manufacturing cost savings of around $14m. Post said this move will allow for reinvestment in its business and to better position the company to compete in today's competitive landscape.
Post's portfolio of brands includes Honey Bunches of Oats, Pebbles, Great Grains, Post Shredded Wheat, Post Raisin Bran, Grape-Nuts, and Honeycomb. With the acquisition of Attune Foods, Post's portfolio of brands now also includes Attune, Uncle Sam and Erewhon. The company offers its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores and the foodservice channel in North America.
