Kellogg May Shift Jobs Here

June 15, 2007
| By Pete Daly |
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WYOMING — Kellogg Co., the Battle Creek cereal and snack food corporation with markets and production facilities all over the world, may be bucking the trend of moving jobs from the U.S. to Mexico.

At a city council meeting in April, the company approached Wyoming city officials for a tax exemption on equipment it plans to install in its existing production plant at

3300 Roger B. Chaffee Drive
in Wyoming. According to Deputy City Manager Barbara VanDuren, a Kellogg Co. spokesman said that the company was planning to move a production line from Mexico to the Wyoming plant.

Wyoming Mayor Pro Tem William A. VerHulst, who chaired the meeting on April 16, confirmed that the Kellogg representative had made that statement.

Kellogg spokesperson Kris Charles would not comment regarding a move of production from Mexico to here, but she did confirm the company may be creating 60 new jobs at the plant in Wyoming

"Kellogg is considering a possible expansion of its food manufacturing operations in the city of Wyoming. The project would involve an estimated personal property investment of approximately $12.9 million. This equipment would increase production at the 3300 Roger B. Chaffee Wyoming facility. We estimate that almost half of the investment would be spent locally on installation. The goal would be to reach full volume on the new cereal bar line within two years after it is installed. At full volume, the line would provide work for approximately 60 additional jobs," said Charles in an e-mail.

When asked if Kellogg Co. was moving production from Mexico to Michigan, she wrote that it is not Kellogg Co. policy "to comment on that level of specifics about production."

The plant, formerly owned by Holland American Wafer Co., will be producing Nutri-Grain Fruit and Nut Bars, Kashi Chewy Granola Bars, Crunchy Nut Sweet and Salty Bars, and Rice Krispies Treats Peanut Butter Bars.

Kellogg also announced last week it will increase the nutritional value of its cereals and snacks for children.

John M. McMillin, an investments analyst who has studied the Kellogg Co., said he had no idea why Kellogg would move a production line from Mexico to the United States. He said that if it is happening, it could be an attempt to "rationalize" plant capacity, increasing production in the Wyoming plant by moving in equipment not needed elsewhere.

Kellogg Co. owns production plants in three cities in Mexico: Linares, Queretaro and Toluca.    

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