Salinas, Mexico — Oero is coming to Mexico, that is, the manufacturing plant. While the cookie is widely available throughout the country, it will now be manufactured in Mexico as well.
The maker of the famous black and white cookie announced their decision July 29. Mondelēz International, Inc., whose brand family includes common household names such as Cadbury, Dentyne, Chips Ahoy! and Oreo, have decided to invest $130 million to install four manufacturing lines at a production center in Salinas, Mexico, which opened late last year.
Employees were hopeful that the company would decide to invest the money in their Chicago-based South Side plant, however, the decision was made to invest in Mexico, resulting in the elimination of about 600 jobs in Chicago.
“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,” Olivier Bouret, a company vice president, said in a news release.
“While the new investment will affect approximately 600 positions in Chicago, we’re committed to treating all impacted employees fairly through this difficult time.”
It’s expected that the new lines will be in place by mid-2016, and will replace the nine inefficient manufacturing lines at the Chicago plant.
The announcement builds on the company’s earlier manufacturing investments of more than $170 million in new lines at its US plant in Fair Lawn, New Jersey, Naperville, Ill. and Richmond, Va. as well as other investments in technology within its North American supply chain.
“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.
“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.”
Their Chicago plant will remain one of their largest in North America in terms of employment. The company says they will continue to upgrade the plant’s capabilities, infrastructure and technology.