Cost cutting drives General Mills to shut NZ manufacturing plant

By RJ Whitehead

- Last updated on GMT

Cost cutting drives General Mills to shut NZ manufacturing plant
General Mills will close its East Tamaki plant by the end of the year as part of an international restructuring process in the face of the company's dwindling international performance.  

The facility manufactures fresh pasta, sauces and refrigerated soup products, and has been operated by General Mills since 2002. The closure will affect 20 employees.

The company had announced a preliminary decision to close the plant last month, saying the decision was subject to consultations. 

That consultation process is complete, and the company will now begin the necessary transition steps to complete the closure of the plant by the end of the calendar year​,” General Mills said in a statement.  

The closure comes as the Minnesota-based maker of Cheerios cereal and Betty Crocker cake mixes strives to boost its profitability amid lacklustre US and international sales. 

The company has said it will cut 675-725 jobs in its international business over the next year under a new restructuring plan aimed at cutting costs and boosting growth.

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