- Four 'Lines of the Future' in Salinas Will Support Growth of Power Brands in Region and Advance Global Supply Chain Journey
- Chicago Plant Will Remain Important Part of the Company's North American Biscuit Network
DEERFIELD, Ill., July 29, 2015 (GLOBE NEWSWIRE) -- Mondelēz International today announced an investment of more than $130 million in its North American biscuits business, as the company continues its journey to modernize its manufacturing assets and processes and create a global best-in-class integrated supply chain. This investment will fund the installation of four state-of-the-art manufacturing lines – "Lines of the Future" – at the company's Americas production facility in Salinas, Mexico, which opened late last year. This investment in these Lines of the Future will be completed by mid-2016 and will replace nine older, inefficient manufacturing lines at its Chicago biscuit plant.
Today's announcement builds on the company's earlier manufacturing investments of more than $170 million in manufacturing lines at its U.S. biscuit plants in Fair Lawn, N.J., Naperville, Ill. 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," said Daniel Myers, EVP, 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."
Chicago Remains an Important North American Manufacturing Site
Today's announcement follows a process that began in early April, involving discussions with employees' union representatives from the Chicago plant as well as company due diligence to select between Salinas and Chicago, the two locations which were considered for this investment.
"The Chicago plant has been and will continue to be an important part of the company's North American biscuit footprint, producing a variety of beloved consumer products," said Olivier Bouret, Vice President, North America Integrated Supply Chain, Biscuits. "While the new investment will affect approximately 600 positions in Chicago, we're committed to treating all impacted employees fairly through this difficult time."
The Chicago plant will continue to be one of Mondelēz International's largest North American manufacturing facilities in terms of headcount, and the company plans to continue to invest in capabilities, technologies and infrastructure upgrades at this facility.
About Mondelēz International
Mondelēz International, Inc. (NASDAQ:MDLZ) is a global snacking powerhouse, with pro forma 2014 revenue of more than $30 billion. Creating delicious moments of joy in 165 countries, Mondelēz International is a world leader in biscuits, chocolate, gum, candy and powdered beverages, with billion-dollar brands such as Oreo, LU and Nabisco biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolate; Trident gum and Tang powdered beverages. Mondelēz International is a proud member of the Standard and Poor's 500, NASDAQ 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com or follow us on Twitter at www.twitter.com/MDLZ.
This press release contains forward-looking statements. Words, and variations of words, such as "will," "plan" and similar expressions are intended to identify our forward-looking statements, including, but not limited to, statements about our investments and the timing and expected results of those investments; our manufacturing facilities and supply chain; growth of our Power Brands; productivity and cost reduction; and our margins. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those indicated in our forward-looking statements. Please see our risk factors, as they may be amended from time to time, set forth in our filings with the SEC, including our most recently filed Annual Report on Form 10-K. Mondelez International disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.
Source:Mondelez International, Inc.