The company said it would also close plants in Fullerton and San Leandro, California; Federalsburg, Maryland; St. Marys, Ontario, Canada; Campbell, New York; and Lehigh Valley, Pennsylvania.
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“In a staged process over the next 12-24 months, production in these locations will shift to other existing factories in North America”, Kraft spokesman Michael Mullen told Reuters.
Even though Oscar Mayer parent company Kraft Heinz has said a decision to close its Madison plant is a done deal, Governor Scott Walker is not giving up hope that new life can be breathed into the facility.
CHAMPAIGN – The newly merged Kraft Heinz will eliminate an undisclosed number of jobs at its Champaign plant as it moves cheese production to other facilities.
Oscar Mayer’s manufacturing plant and corporate headquarters in Madison will close in early 2017, a move that is expected to result in the loss of about 1,000 jobs.
“The job cuts come on top of 2,500 positions eliminated in August”.
The Kraft Heinz Company is the third-largest food and beverage company in North America and the 5th-largest food and beverage company in the world.
The Iowa Economic Development Authority (IEDA) board today approved state incentives to the Kraft Heinz Foods Company to keep the production of Oscar Mayer products in Davenport.
When the merger spurred by a joint venture of Warren Buffett’s Berkshire Hathaway and Brazilian private investment group 3G Capital went through this summer, a goal was set to find $1.5 billion in savings by the end of 2017. “We have companies that have been very successful and are looking for employees so we’re going to do our best to try to put these people in other jobs”.
Workers leave the Kraft Foods-Oscar Meyer headquarters and plant in Madison, Wis., Wednesday, November 4, 2015.
As for the would-be displaced workers, the management of the company assured that they would be properly compensated with severance pay.
“We knew for a while that there was a possibility that the plant would be closing”, Kay said.
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The construction of a new manufacturing plant in Davenport is considered a victory for Iowa officials, who competed with another state to secure a home for the new facility, according to the documents the board reviewed before approving the tax breaks.
