HOLLAND — Kraft Heinz Company has taken the next step in a company-wide consolidation strategy that began in 2015 after Kraft Food Group Inc. merged with H.J. Heinz Company.
The Pennsylvania-based company announced today its plans to invest $17 million to consolidate production of its Grey Poupon brand of mustard and the majority of yellow mustard production at its Holland facility, according to a statement.
Kraft Heinz will transition the production of Grey Poupon mustard from its Lehigh Valley production facility in Upper Macungie Township, Penn., which it plans to shutter this summer as part of a company-wide consolidation strategy, according to a report in The Morning Call.
The Lehigh Valley plant closure comes as part of a larger cost-cutting strategy that will close six other production facilities in the U.S. and Canada and eliminate 2,600 jobs over the next 24 months.
Kraft Heinz expects to incorporate the new production in over two phases and create 50 new positions as part of the expansion, according to a Michigan Economic Development Corporation (MEDC) internal briefing memo on the project.
“We’re still sorting through the particulars for transitioning production of our Grey Poupon line to the Holland facility but we will keep our employees and the community posted on our progress,” wrote Michael Mullen, senior vice president of corporate and government affairs, in an email to MiBiz.
The company received a $500,000 performance-based grant from the MEDC to support the expansion and offset costs associated with upgrading the on-site wastewater treatment facility, according to the briefing memo.
Kraft Heinz considered expanding its Grey Poupon production to a site in Illinois since it “would not require upgrades to the facilities thus providing a significant economic advantage,” according to the memo.
Kraft Heinz was previously awarded a $200,000 grant from the Pennsylvania Department of Community and Economic Development (DCED) for a proposed $35 million expansion project at its Lehigh Valley plant in 2013. However, following the announcement of the plant’s closure last year, the state has since demanded the money back, according to a report published today by The Morning Call.
The company has been in contact with the Pennsylvania DCED and intends to pay the money back, according to the report.