"But several factors make closing the plant the most viable alternative," he adds. "First, the Holland plant is significantly underutilized following the divestiture of breath mints and gum by Nabisco in 2000. Second, the Mount Royal plant has the space to absorb Holland's production. Third, production at Mount Royal will benefit from lower manufacturing costs. Together, these factors will enhance our efficiency and make the best possible use of our manufacturing assets."
Cathy Pernu, a company spokeswoman for Northfield, IL-based Kraft, tells GlobeSt.com the lower price of raw materials, such as sugar, in a move to Canada is also is a factor. The Holland plant, located at 635 East 48th St., has approximately 600 employees and was acquired by Kraft through its purchase of Nabisco in December 2000.
It was constructed in 1966 by the Beech Nut Corp. and purchased by Nabisco Brands, Inc. in 1982. Since its inception, the plant has produced a variety of gums, mints and hard candies.
It's about 429,000 sf, and sits on 80 acres, Pernu says.
Plans are to begin a phased closing in the spring of 2002, with production ending during the summer of 2003, followed by removal and transfer of the remaining equipment and preparation of the vacant building for sale.
Atkinson says the announcement now is to provide lead time for employees to consider their options, as well as time to meet with employees and union representatives to discuss the matter in more detail.
"It also provides time for a smooth business transition," he says.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
