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WK Kellogg, the US breakfast cereal manufacturer that was spun off from Kellogg’s (now Kellanova) last year, has announced plans to modernize its supply chain with a $450 to $500 million investment and the closure of a manufacturing plant in Omaha (NE) in 2026.
The company intends to invest in new infrastructure, equipment, technology, and capabilities at its facilities in Battle Creek (MI) and Lancaster (PA), as well as Bellville, Canada, with plans to boost production at each of these sites.
The proposed closure of the Omaha plant involves involves a phased reduction in production, with workforce reductions of about 550. The company also plans to decrease output at its Memphis (TE) facility, beginning in late 2025.
Commenting on the move, WK Kellogg chairman and chief executive officer Gary Pilnick said: “Today’s announcement regarding modernizing our supply chain marks a significant step forward in executing our strategy and enhancing WK Kellogg Co’s long-term strength and resilience. These actions will help transform our supply chain and will allow us to enhance our production across a more reliable, agile and cost-effective manufacturing network, supporting top-line delivery and driving margin expansion”.
Source: WK Kellogg
