Milling & Baking News - September 30, 2014 - 9

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General Mills to close Lodi plant
as part of wider streamlining
MINNEAPOLIS - General Mills, Inc.
plans to close its ready-to-eat cereal
plant in Lodi, Calif., as part of its larger Project Century effort, the company
announced in a Sept. 18 filing with the
Securities and Exchange Commission.
Project Century is a review being
undertaken by General Mills of its
North American manufacturing and
distribution network to look for additional opportunities to reduce cost.
The effort is focused on streamlining
and simplifying the company's North
American operations and positioning
General Mills' supply chain for future
growth.
"We're relocating production to make
our network simpler and more responsive, and we'll capture cost savings in
the process," John Church, executive
vice-president of global supply chain

at General Mills, said during a Sept. 18
conference call with analysts. "We're targeting $100 million in cumulative cost
savings by F.Y. 17, with material savings
realized in the beginning of F.Y. 16."
One of those cost savings will be
closing the Lodi plant.
"We notified the union member employees and union representatives at
our Lodi, Calif., facility of our tentative
decision, pending negotiations and
consultation with the union, to close
this plant to eliminate excess cereal
and dry mix capacity in our U.S. retail supply chain," the company noted
in the S.E.C. filing. "If implemented,
this action could affect approximately
430 positions, and we expect to incur
charges of approximately $70 million
in fiscal 2015, including approximately
$31 million of severance expense and

Amid soft demand, Cargill to
close Memphis corn refinery
MEMPHIS, TENN. - Cargill said it will
close its corn milling facility in Memphis
by January 2015, citing "underutilization" and "location away from the Corn
Belt." The company employs approximately 440 people at the mill, of which
120 are contract employees. Cargill said
the corn oil refinery will remain open
and operate as a standalone facility to
continue to serve customers.
"The decision to close our Memphis

corn milling facility was made only
after a careful examination of the current business situation and we examined all other possible options," said
Julian Chase, president of Cargill Corn
Milling. "This was a difficult decision
to make because we have an excellent
team of employees in Memphis. It is unfortunate that we must close any plant
because of the impact to good people,
their families and the community."

Bay State Milling unveils new logo
QUINCY, MASS. - Bay State Milling
Co. has introduced a new corporate
logo and tagline: "A Trusted Family
of Ingredients." The logo incorporates
contemporary elements while staying
true to the company's
branded color scheme.
The visual impact will
be carried over to a new
web site expected to be
completed early in 2015.
"Following the successful integration of recent acquisitions, the
company logo reflects a unified message that encompasses its expanded
position into specialty grains, seeds
and blends as well as its historic
leadership in inspired and authentic
wheat-based ingredients," the Quincy-based company said.
bakingbusiness.com / world-grain.com

Bay State Milling is a 115-year-old,
family-owned business transitioning
to the fifth generation of the Rothwell
family.
"Trust within the grain-based food
value chain and within
our team has been the
cornerstone of Bay State
Milling since 1899," said
Peter Levangie, president and chief operating
officer. "Family refers not only to the
ownership and guidance of the Rothwell family, but also to the family of
customers, employees, suppliers and
communities who contribute so much
to our success and the family of solutions that allow us to fulfill our mission
of providing innovative and distinctive
ingredients for grain-based foods." MBN

Business

$39 million of additional expense,
primarily fixed asset write-offs. We
expect this action to be completed
by the end of fiscal 2017 with a total
cost of approximately $123 million, of
which approximately $24 million will
be cash."
Another one of the cost saving initiatives detailed in the S.E.C. filing
was the closing of a Methuen, Mass.,
yogurt facility. General Mills said the
move will affect approximately 250
positions, and the company expects
to record approximately $7 million
of severance expense in the second
quarter of fiscal 2015. The company
also expects to record approximately
$16 million of additional expense in
the second quarter of fiscal 2015 and
$18 million of expense in the remainder of fiscal 2015, primarily fixed asset
write-offs. The action is expected to
be completed by the end of fiscal 2017
with a total cost of about $65 million,
of which $17 million will be cash. MBN
Cargill said it remains committed
to its U.S. corn milling business and
will leverage the rest of its network to
continue to serve customers. Cargill
also said it will continue to honor its
community commitments in Memphis through the end of calendar year
2014.
In addition to Memphis, Cargill
operates corn refining plants in Hammond, Ind.; Cedar Rapids, Iowa; Eddyville, Iowa; Blair, Neb.; Wahpeton,
N.D.; and Dayton, Ohio, according to
the Grain & Milling Annual 2013 published by Sosland Publishing Co. MBN

Ardent Mills rolling
in the Rockies
DENVER - Ardent Mills recently took part
in the third annual Pedal the Plains as the
2014 Entertainment Sponsor.
On Sept. 20, Ardent Mills joined cyclists
and the company's Mobile Innovation Center, in partnership with the Food Bank of the
Rockies, to take part in the event.
"I am proud to be part of our nine-person
cycling team in support of this great event,"
said Bill Stoufer, chief operating officer and
chief integration officer at Ardent Mills.
"This is an opportunity to nourish our communities in northeastern Colorado, a region
steeped in history and agriculture. This
event is reflective of the health conscious, active, innovative nature of the Ardent Mills'
brand."
Teaming up with Ardent Mills was Laura
Egan from the Food Bank of the Rockies. MBN
Milling & Baking News September 30, 2014 / 9

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Milling & Baking News - September 30, 2014

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