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General Mills to Restructure Global Supply Chain

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General Mills to Restructure Global Supply Chain

General Mills to Restructure Global Supply Chain
July 28
09:21 2016

North America-based international food group General Mills has announced restructuring in its global supply chain, impacting its US, Brazil, and China operations. General Mills has made a tentative decision to close its manufacturing facility in Vineland, New Jersey, and transfer production to other US facilities to eliminate excess soup capacity in its North America supply chain. The proposed closure would impact approximately 370 employees. General Mills expects the action to be completed by the first quarter of fiscal 2018. The Vineland facility has been operated by General Mills since 2001.

General Mills has reached a tentative agreement to sell its Martel, Ohio, facility to Mennel Milling Company, pending negotiations with union officials. If the decision becomes final, the sale is expected to close by the second quarter of fiscal 2017. At that time Mennel would act as a supplier to General Mills. A closure would impact approximately 180 employees. The Martel plant manufactures dry baking mix products and has been operated by General Mills since 2001.

General Mills has decided to close the Marília manufacturing facility and distribution center and transfer production out of the São Bernardo do Campo facility to other General Mills facilities in Brazil. General Mills is negotiating an exit package for the approximately 420 impacted employees with union officials for both locations. The Marília closure and the transfer of production out of São Bernardo do Campo will be completed in the first quarter of fiscal 2017. Both the Marília and São Bernardo do Campo facilities have been operated by General Mills since 2012.

General Mills has also decided to exit the fruit snacks business in China. The company will stop producing Trix products at its Nanjing, China, facility during the first quarter of fiscal 2017. General Mills will continue to make Bugles snacks in Nanjing. The decision will result in the loss of approximately 300 positions in China. General Mills has manufactured Bugles in China since 1999 and Trix since 2005.

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