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Lifesavers Plant Won't Last Much Longer

HOLLAND, MI-Several factors, including the low use of the plant and lower sugar costs further north in Canada, were among the reasons for Northfield, IL-based Kraft Foods North America to close the 429,000-sf facility.

By Robert Carr | Updated on May 03, 2002

HOLLAND, MI-Kraft Foods North America has decided to close its facility herewhere it makes Lifesavers candies and transfer production of its hard candies and mints to a Kraft facility in Mount Royal, Quebec in the summer of 2003. “This is especially difficult, because our Holland employees have done a great job and worked hard to make the plant competitive,” says James Atkinson, South/Great Lakes Area vice president of operations for the company.

“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.

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