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Mondelez is investing $130 million in modernizing its North America supply chain

A robust supply chain is a vital part of any business—and the more your business grows, the more important a strong supply chain becomes. Global s...

Frazer Jones
|Aug 3|magazine9 min read

A robust supply chain is a vital part of any business—and the more your business grows, the more important a strong supply chain becomes. Global snack giant Mondelez International understands this, and recently announced that it is investing $130 million to update and strengthen its North American supply chain.

According to a press release from Mondelez International, the focus of this supply chain build-up will be its North America-based biscuit business. With this in mind, the company plans to install four all-new state-of-the-art manufacturing lines at its production facility in Salinas, Mexico, which manufactures biscuits to serve Mondelez International’s Americas consumer base. Dubbed “Lines of the Future” by the company, plans are in place to complete the new lines by mid-2016.

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"This new investment is part of our ongoing supply chain reinvention plan, as we implement several initiatives around the world to transform our global manufacturing processes to accelerate growth, reduce costs and improve productivity," said Daniel Myers, EVP, Integrated Supply Chain, in the press release from Mondelez International. "These investments will enable a significant percentage of our global Power Brands to be produced on advantaged assets and are key contributors to our overall margin improvement."

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This is not the only modernization effort that Mondelez is currently undertaking, as the company is also investing in updated manufacturing lines at its production facilities in New Jersey and Virginia. It’s also not completely free of issues—the production lines in Salinas will replace outdated and less efficient production lines at another Mondelez facility in Chicago. But according to Mondelez, the Chicago plant will remain active and will see technological and infrastructure upgrades in the future.

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"The Chicago plant has been and will continue to be an important part of the company's North American biscuit footprint, producing a variety of beloved consumer products," said Olivier Bouret, Vice President, North America Integrated Supply Chain, Biscuits. "While the new investment will affect approximately 600 positions in Chicago, we're committed to treating all impacted employees fairly through this difficult time."

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[SOURCE: NASDAQ Globe Newswire]