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General Mills to Close Plants to Reduce Costs

September 30, 1997|Associated Press

General Mills said it plans to close cereal plants in Illinois and Canada and scale back production at a California operation to reduce costs and excess capacity. About 235 jobs will be eliminated when the company shuts down its two smallest plants--in southern Chicago and Etobicoke, Canada--and a cereal production line in Lodi, Calif. Minneapolis-based General Mills, the nation's second-largest cereal maker, estimates the restructuring will save $22 million a year after taxes, or 14 cents a share, beginning in fiscal 1999. The move is necessary to keep up with the demand for new cereals produced with state-of-the-art technology, the company said. General Mills shares rose $1.31 to close at $69.06 on the New York Stock Exchange.

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