Mondelez International is taking another important step in creating a best-in-class global supply chain by announcing plans to invest more than $130 million in new biscuit manufacturing technology and capabilities in its current U.S. network, according to the company. The investment will focus on bakeries in Fair Lawn, N.J., and Richmond, Va., supporting priority cookie and cracker brands and product platforms. To enable this investment, the company will consolidate its current U.S. biscuit manufacturing footprint on the East Coast, resulting in the closure of its Philadelphia, Pa. bakery by early 2015.
"This investment in our North American biscuit supply chain offers us an exciting opportunity to further improve the overall effectiveness, efficiency and the competitiveness of our manufacturing network, with a focus on driving big bets and accelerating growth for the biscuit category," said Cindy Waggoner, vice president, North America integrated supply chain, biscuits, in a prepared statement. "This announcement is also bittersweet. It's always a difficult decision to close a manufacturing facility, especially one like the Philadelphia bakery, which has been part of our organization and the community for many years."
The role of the Philadelphia, Pa. bakery within the company's biscuit manufacturing network footprint has changed over time. The site currently produces a limited number of core products. Other facilities are better positioned to support the company's future business needs.
The closure of the Philadelphia, Pa. bakery will affect approximately 350 employees, who were informed of the company's decision.
"Our focus right now is on our employees in Philadelphia. We're making this announcement almost a full year in advance of the planned closure to help provide a smooth transition. We're committed to treating our employees fairly and working with them through this difficult time," Waggoner added.
With this announcement, Mondelez International further demonstrates its global focus on redesigning its manufacturing network and creating an integrated supply chain organization capable of delivering a demonstrable advantage while generating savings that can be reinvested for growth.