Post cereal to close Clinton manufacturing facility
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Post will close its manufacturing facility in Clinton less than a year after acquiring the facility's parent company.
A Clinton cereal manufacturing facility owned by Missouri-based Post Holdings will close by August 2019.
Post, which produces Honey Bunches of Oats, Pebbles and other recognizable brands of cereal, will close the facility, which currently employs 180.
The facility was acquired with the $1-billion acquisition of Weetabix in July.
Post said it will negotiate with the union representing the hourly employees at the facility. All employees have been notified, the company said.
The decision to close the plant comes less than two weeks after the company announced plans for an $85-million manufacturing and distribution facility in Iowa for its Michael Foods business.
According to filings with the U.S. Security and Exchange Commission, the company’s board of directors approved the closure of the Clinton facility on Feb. 23., "reflecting the company’s continuous improvement initiative to optimize its cereal production network and manage costs in the ready-to-eat cereal category.”
In a statement, Senior Vice President of Supply Chain Operations Dan McBeain said the cereal production will be moved to other plants within the company's network over the next year and a half.
“By leveraging our broad network capabilities, we can keep our costs as low as possible for continued growth in both traditional and natural/organic cereal,” McBeain said.
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