140 Jobs at Risk as Post Considers Closing Modesto Plant
St. Louis-based Post Holdings , owner of the Post brand, and maker of such familiar boxed cereals as Shredded Wheat, Grape Nuts, and Honeycomb, announced Thursday that, in order to improve efficiency of operations, and "to better position the Company for future growth," it may have to close its manufacturing facility in Modesto, California.
Closure would necessarily affect the 140 employees at the plant. Post will consult with union representatives at the plant before making a final decision. The company expects to know which way it will go by the end of April.
"Excess capacity" is the problem, explained Post President and Chief Operating Officer Terence E. Block. "This initiative, if we proceed, would provide the increased efficiency necessary to compete in today's environment," he said.
Post shares reacted negatively to the news, falling 0.4% in Thursday trading to close at $42.01.
The article 140 Jobs at Risk as Post Considers Closing Modesto Plant originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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