Kraft Heinz is closing down seven plants in North America, the company said Wednesday.
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Over the next two years, six manufacturing facilities in the US and one in Canada will shut down, Kraft Heinz said in a statement.
He added: “This will make Kraft Heinz more globally competitive and accelerate the company’s future growth”.
“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. It also makes on-demand coffee products for Keurig and Tassimo products. Part of the company’s cheese production will also be moved away from Champaign, Illinois.
Still, Kraft Heinz chose to close its Campbell plant but, according to the New York state, will “work with state, federal and local officials to help find a strategic buyer for the facility that would keep the plant open and retain the 393 jobs”.
“Our members are scared of the unknown”, said Jerry Messer, president of the Davenport chapter of the United Food and Production Workers, which represents employees.
Investors and analysts have been expecting cuts at the company since the $46 billion merger was announced in March.
The Iowa Economic Development Board approved the financial assistance package Thursday.
The agreement will ensure that Kraft-Heinz preserves a significant employment base throughout New York State for years to come and paves the way for additional investment and growth at a number of Kraft-Heinz facilities.
A few downsizing had been expected following the merger of Kraft and Heinz earlier this year.
A Kraft Heinz manufacturing plant in the Delaware County town of Walton that was slated for closure has been saved in an eleventh-hour deal struck by Gov. Andrew Cuomo and U.S. Senator Chuck Schumer, according to a press release issued on Wednesday, November 4.
State Rep. Gary Day, R-Lehigh, echoed that sentiment in his own statement, hoping Kraft Heinz will reconsider the closure and give state officials an opportunity to address their concerns.
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Mayor Paul Soglin tried to see a positive in the timing of the closure, noting the city has emerged from recession. He called the workers the “heart and soul” of the city’s north side.
