WK Kellogg looks to increase production in Battle Creek

While WK Kellogg has announced it will be shuttering its Omaha, Nebraska plant and scaling back another, it will also be investing in other locations, including Battle Creek.

The announcement came as part of the company’s Second Quarter Financial Results and Next Steps of Supply Chain Modernization Plan.

“The company plans to invest in new infrastructure, equipment, technology, and capabilities at its Battle Creek, Michigan; Belleville, Ontario; and Lancaster, Pennsylvania plants, and plans to increase production at these locations,” the company said in a press release. “The company also plans to consolidate its manufacturing footprint by closing its Omaha, Nebraska plant, with a phased reduction in production beginning in late 2025 and full closure toward the end of 2026. The company also plans to scale back production in its Memphis, Tennessee facility commencing late 2025, resulting in a more focused, streamlined facility.”

The reductions and increases will result in a loss of 550 people, the press release said.

“Actions that impact our people and the communities where we operate are challenging and are made with thoughtful consideration,” Gary Pilnick, chairman and chief executive officer, said in the press release. “We recognize and appreciate the tremendous contributions of our WK teams in Omaha and Memphis, and we are committed to providing them support throughout this transition.”

The Michigan Strategic Fund Board in December unanimously approved a Michigan Business Development Program Grant of up to $5 million for WK Kellogg Co and a Designated Renaissance Zone that will abate property taxes by an estimated $1.27 million annually for 15 years.

More: 'This is the right thing to do': State incentives help WK Kellogg Co retain jobs in Battle Creek

WK Kellogg Co said at the time it plans to invest at least $44 million, with the potential for it to be up to $143 million, in Battle Creek. The December announcement said the investment would retain 170 jobs that were previously slated to be lost from the idling of two production lines being moved to Belleville, and create 43 new positions, with an average wage of $2,200 per week.

This article originally appeared on Battle Creek Enquirer: WK Kellogg looks to increase production in Battle Creek