USA: General Mills to close California yoghurt plant

General Mills, the US food giant, has announced it intends to close its yoghurt factory in Carson, CA, USA as part of a restructure of its manufacturing operations.

In a filing with the United States Securities and Exchange Commission, General Mills said the move formed part of “actions to drive efficiencies in targeted areas of our global supply chain by consolidating production and optimizing our labor, logistics and manufacturing platforms”.

The Carson plant was established in 1979 and produces yoghurts under the Yoplait and Mountain High brands.

“We expect to incur approximately $130 million of net expenses related to these actions, including approximately $25 million of severance and approximately $105 million of other exit costs and project-related costs, primarily asset write-offs”, the company added in its filing. “We expect to pay approximately $30 million of net cash related to these actions”.

Source: Food Business News / General Mills (via Seeking Alpha)