Mondelez to invest $130 million in facility in Mexico
Mondelez International, Deerfield, IL, announced on July 29 that it would investment more than $130 million in its North American biscuits business, installing four state-of-the-art manufacturing lines at its Americas production facility in Salinas, Mexico, which opened late last year. The lines will be installed by mid-2016, according to the company, and replace nine older manufacturing lines at its Chicago biscuit plant, which makes a variety of Mondelez products.
The announcement builds on the company’s earlier manufacturing investments of more than $170 million in manufacturing at its U.S. biscuit plants in Fair Lawn, NJ; Naperville, IL; and Richmond, VA, as well as additional investments, in recent years, in technologies and capabilities within its North American Supply chain.
“This new investment is part of our ongoing supply chain reinvention plan, as we implement several initiatives around the world to transform our global manufacturing processes to accelerate growth, reduce costs and improve productivity,” says Daniel Myers, executive vice president, integrated supply chain. "These investments will enable a significant percentage of our global Power Brands to be produced on advantaged assets and are key contributors to our overall margin improvement.”
Closure of the nine Chicago lines will result in the layoff of approximately 600 workers, half the bakery’s workforce, according to the Chicago Tribune. Seven other production lines at the Chicago facility will be upgraded and continue to make certain Mondelez products.