Kellogg's Closing Factory: GCSE Business In The News

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What's the story?

Kellogg's, operated by Kellanova, has announced plans to close its factory in Trafford Park, Greater Manchester by the end of 2026. This decision will result in the loss of approximately 360 jobs.

The announcement came after three months of talks with union and employee representatives, which concluded with a formal agreement that includes enhanced redundancy packages for affected staff and potential redeployment opportunities where possible.

Kellanova had initially revealed the potential closure of the 90-year-old facility in February, citing the site's age and the presence of a large amount of redundant space as contributing factors.

The Trafford Park factory currently produces around one million boxes of cereals like Corn Flakes, Rice Krispies, and Coco Pops daily. However, Kellanova's UK managing director, Chris Silcock, stated that the closure decision was not related to the workforce but rather the site's outdated layout and manufacturing processes, which made it unviable for long-term operations and would require significant investment to maintain.

Kellanova and the unions agreed on a joint statement acknowledging the employees' contributions and committing to support their transition beyond the company.

While the Trafford Park plant will close, Kellanova aims to maintain Kellogg's production volumes in the UK, with its facilities in Wrexham and headquarters in Salford's MediaCity, employing around 1,000 people, remaining unaffected by this decision.

Kellogg's closing factory