Printer Friendly

QUAKER ANNOUNCES CONSOLIDATION AT KANKAKEE PET FOODS PLANT

 QUAKER ANNOUNCES CONSOLIDATION AT KANKAKEE PET FOODS PLANT
 CHICAGO, Sept. 9 /PRNewswire/ -- The Quaker Oats Company (NYSE: OAT) announced today that it will be consolidating the production facilities at its Kankakee, Ill., Pet Foods Division plant. The current Kankakee plant manufacturing configuration consists of two physically separate structures, one for processing dry pet food and the other for processing semi-moist pet food and packing all products. Under the consolidation plan, both processes will be located in one building.
 The consolidation will result in a pretax restructuring charge of $38.6 million, or 37 cents per share after-tax, which will be taken in the first quarter of fiscal 1993 ending Sept. 30, 1992.
 Gregg Tanner, plant manager, said, "The consolidation will result in significant operating savings and reduce the plant's asset base, enabling the plant to be cost competitive with other pet food manufacturers. The consolidation will not decrease the plant's overall manufacturing capacity, but will shift output from the declining semi- moist category to the growing dry dog food segment. The consolidation will also increase the plant's ability to source new types of pet foods. Reducing manufacturing costs will help strengthen the plant's role as a premier supplier of quality pet foods."
 In addition to reducing the asset base, Tanner said the plant's employment needs will change over the next couple of years. The exact number is still being finalized. Current employment stands at 427. Most of the reductions are expected to occur through attrition, Tanner said, and no adverse impact on employment in the community is expected.
 The consolidation is expected to begin later this month with completion expected by August, 1993.
 The Kankakee Plant manufactures the following brands of dry dog food, semi-moist dog food and pet treats: Gravy Train, Choice Blend, Gainesburgers, Moist'n Beefy, Special Cuts, Snausages and Pounce.
 Other Pet Foods Division plants are located in Topeka, Kansas and Lawrence, Kansas.
 -0- 9/9/92
 /CONTACT: Ronald G. Bottrell, director of media relations of Quaker Oats Co., 312-222-7388/
 (OAT) CO: Quaker Oats Company ST: Illinois IN: FOD SU:


TM -- NY081 -- 7668 09/09/92 16:33 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 9, 1992
Words:351
Previous Article:AGOURON ANNOUNCES $1.8 MILLION NIH GRANT FOR NEW ANTI-HIV COLLABORATION
Next Article:MCI SETS UP SECOND FREE PHONE CENTER IN FLORIDA CITY
Topics:


Related Articles
QUAKER CANADA ANNOUNCES CORPORATE REFOCUSING
QUAKER REPORTS RECORD SALES FOR FISCAL 1994
QUAKER REPORTS LOWER FIRST-QUARTER EARNINGS; SALES UP 7 PERCENT IN QUARTER
QUAKER OATS ANNOUNCES PLANS FOR DALGETY TO ACQUIRE QUAKER'S EUROPEAN PET FOODS BUSINESS
HEINZ TO ACQUIRE QUAKER PET FOOD BUSINESS IN U.S. AND CANADA
QUAKER OATS TO UNDERGO FURTHER REALIGNMENT; WILL RESULT IN CHARGE IN FISCAL 1995
HEINZ COMPLETES ACQUISITION OF QUAKER'S PET FOODS DIVISION
HEINZ TAPS J. WALTER THOMPSON/CHICAGO FOR PET PRODUCTS DIVISION
HEINZ SIGNS AGREEMENT TO ACQUIRE MAJORITY INTEREST IN ARGENTINE PET FOOD COMPANY
HEINZ TO EXPAND ITS PET PRODUCTS BUSINESS WITH ACQUISITION OF NATURE'S RECIPE PET FOOD

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters