An Oscar Mayer plant in Madison that has been around for almost a century will close as part of business moves by the parent company.
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Kraft Heinz Co. said Wednesday it will eliminate more than 1,000 jobs in Madison when it closes its Oscar Mayer plant there and moves its corporate USA meat business to Chicago.
Madison Mayor Paul Soglin said he was informed of the decision on Tuesday evening in a personal visit from Kraft Heinz corporate officials. In addition to these two moves by the company, ConAgra Foods CAG has also announced plans to move its headquarters form Omaha to Chicago, bringing 400 jobs with it.
“The impact on Madison and the metro area has got to be in the hundreds of millions of dollars”, said Soglin.
Mayor Rahm Emanuel is crediting Chicago’s workforce and its transportation networks for the decision by Kraft Heinz to move Oscar Mayer’s headquarters to the city.
The headquarters will shift from Madison to Chicago; the other plants slated for closure include facilities in Fullerton, California; San Leandro, California; Federalsburg, Maryland; St. Marys, Ontario, Canada; Campbell, New York; and Lehigh Valley, Pennsylvania.
The news comes as the company is planning a new state-of-the-art manufacturing facility in Davenport, Iowa, according to the Associated Press. Overall, the company said it will consolidate several of its facilities over the next two years, which will result in the loss of 2,600 manufacturing jobs.
A spokesman for the Wisconsin Economic Development Corporation says no one asked for an incentive package to stay. She said a team was being put together to survey workers’ skills and training needs.
H.J. Heinz acquired Kraft Foods Group in March to create the third largest food and beverage company in North America. Kraft Heinz will also maintain its offices in Pittsburgh.
“It’s an institution for the city of Madison”, added state Sen.
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“It’s been around longer than I have”, Risser, 88, said.
