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Rayong plant to be expanded under Kellogg's Project K plan

Kellogg Co is expanding its Rayong cereal and snacks plant as part of several changes to optimise its global manufacturing network under its Project K four-year efficiency and effectiveness programme.

Project K will unlock cost savings that Kellogg will invest in its strategy and grow its business. Through Project K, Kellogg is strengthening its existing business in core markets, increasing growth in developing and emerging markets and driving increased value-added innovation.

Other supply-chain infrastructure changes include closure of the snacks plant in Charmhaven, Australia, and closure of the ready-to-eat cereal plant in Ontario, Canada.

"As with any project of this scope and one that impacts people, these are difficult decisions," John Bryant, president and CEO, said this week in a statement.

"We are very mindful of the impact these changes will have - particularly to our employees. As our employees and others would expect from Kellogg, we will help those who are impacted through their transitions."

The plant in Ontario is expected to close by the end of 2014 and the Charmhaven plant is expected to close by late 2014.

These jobs are being eliminated, not relocated, and Kellogg will be making more effective use of existing capacity in its manufacturing network.

The Rayong expansion will be fully operational by early 2015.

"We have a compelling business need to better align our assets with marketplace trends and customer requirements," Bryant said.

"To that end, we are taking action to ensure our manufacturing network is operating the right number of plants and production lines - in the right locations - to better meet current and future production needs and the evolving needs of our customers."

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