Food giant General Mills is going to close its frozen dough plant in Trenton, Ont., by Nov. 30, throwing 470 employees out of work.
The company reached the decision on Aug. 23, it said in a filing made Tuesday with the U.S. Securities and Exchange Commission.
The decision, one of two it classified as a restructuring, was made after a study of the viability of the plant.
General Mills also said it was getting out of the frozen waffle business "due to declining financial results," and will close the frozen waffle plant in Allentown, Pa., affecting 111 employees.
Closing the Trenton plant will cost the company $40 million US in fiscal 2008 (ending in late May 2008) and fiscal 2009, including $7 million US in the first quarter of 2008 to pay severances and charges associated with a pension plan, and $17 million US of accelerated depreciation charges in the second quarter.
The company sells hundreds of products, including Cheerios cereals, Yoplait yogurt, Pillsbury doughs, Green Giant frozen vegetables, Old El Paso Mexican foods and Haagen-Daz ice cream.
Canadian sales in fiscal 2007, ended May 27, were $611 million US. Total sales were $12.4 billion US, and profit was $1.14 billion US.
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