June 14, 2012

Kraft Foods to close US manufacturing facility

American food firm, Kraft Foods, is planning to cease operations for its manufacturing plant in Wisconsin, US by 2013, a move which may cost about 120 job losses.

The company plans to shift the production to its facility in Wausau, which will add 20 new positions.

Kraft's Cheese & Dairy unit operations vice president Jim Durkin said that after careful analysis and evaluation, the company has identified some opportunities to combine production, gain efficiencies and reduce expenses.

"Combining Waupaca volume with our Kraft Wausau plant and external manufacturers will significantly lower costs and create more scale across our manufacturing network," Durkin added.

Kraft noted that it will offer assistance to Waupaca employees who lose their jobs. They will be given the first priority for the new positions at Wausau plant.

The Waupaca plant, which was acquired by Kraft in 1987, produces specialty spreads and cheeses under the Athenos, Kraft and Hoffman's brands.