General Mills also has reached a tentative agreement to sell its Martel, Ohio, U.S., plant to Mennel Milling Co.
D. Ford Mennel, president of Mennel, said in a statement on the company’s website, “It allows us to continue value to wheat flour and expand our product offerings to better serve our customer base. With this acquisition we will no longer be constrained to selling flour as an ingredient into baked goods or bakery mix. We will now be able to offer a full line of bakery mix products to our big box, commercial, wholesale, and bakery customers and marketplaces.”
The tentative agreement is pending negotiations with union officials. The Martel plant, which manufactures dry baking mix products, has been operated by General Mills since 2001 and employs approximately 180. Mennel has been a supplier to the Martel facility for over 40 years.
If the decision becomes final, the sale is expected to close by Nov. 1, at which time Mennel would act as a supplier to General Mills.
This agreement is a part of a broader restructuring of General Mills.
In China, General Mills said it will cease production of Trix products at its Nanjing, China, plant in the first quarter of fiscal 2017.
General Mills announced the decision to close a manufacturing plant and distribution center in Marília, Brazil and transfer production of a facility in São Bernardo do Campo, Brazil to other General Mills facilities in Brazil. The company said it is negotiating an exit package for the approximately 420 affected employees with union officials for both locations. Both plants have been operated by General Mills since 2012. The actions are expected to be completed in the first quarter of fiscal 2017.
In China, General Mills said it will exit its fruit snacks business and will cease production of Trix products at its Nanjing plant in the first quarter of fiscal 2017. The company plans to continue manufacturing Bugles snacks in Nanjing. The decision will result in the loss of approximately 300 positions in China. The company has manufactured Bugles in China since 1999 and Trix since 2005.
General Mills has made a tentative decision to shutter its soup facility in Vineland, New Jersey, U.S.
General Mills said it has made a tentative decision to shutter a soup facility in Vineland, New Jersey, U.S., and transfer production to other U.S. facilities. The plant has been operated by General Mills since 2001 and employs approximately 370. The company said the closing would be completed by the first quarter of fiscal 2018 if the decision is finalized. However, the action is subject to negotiation with union officials, who on July 21 released a statement denouncing the closing.
For the fiscal year ended May 29, General Mills recorded net income of $1.697 billion, equal to $2.83 per share on the common stock, and an increase of 39% when compared with fiscal 2015 results. Sales for the year fell 6% to $16.563 billion compared with fiscal 2015. Net income improvement was attributed to cost reduction initiatives and the divestiture of the Green Giant business.