Post Holdings Inc., a manufacturer, marketer, and distributor of branded ready-to-eat cereals, has announced that after discussions with the union representing hourly employees at the Modesto, Calif. plant, the company’s management has made a decision to close the plant. The Modesto plant has approximately 140 employees. The transfer of production capabilities and closure of the plant is expected to be completed by September 2014.
Upon completion of the transfer and start-up of production at other facilities, which is estimated to require capital expenditures of approximately $29.8 million, Post expects to achieve net pretax annual cash manufacturing cost savings of approximately $14 million. These actions are intended to allow for reinvestment in Post’s business and to better position Post to compete in today’s competitive landscape.