Mondelēz to close two plants in Brazil, cutting 1,400 jobs

By Douglas Yu contact

- Last updated on GMT

Mondelēz produces both global and local brands in Brazil such as Oreo and Sonho de Valsa. Pic: ©GettyImages/IttaiD
Mondelēz produces both global and local brands in Brazil such as Oreo and Sonho de Valsa. Pic: ©GettyImages/IttaiD
Mondelēz will close two manufacturing plants in Brazil (Bauru and Piracicaba, São Paulo) by the end of 2018, and transfer their production to two other facilities in the country.

The Bauru site currently produces gum and candy, while Piracicaba plant manufactures biscuits, according to the company.

“With this strategic business decision, the company will concentrate its production in Curitiba (Paraná) and Vitória de Santo Antão (Pernambuco) - factories that are already operating in a multi-category model,”​ said Mondelēz.

The Curitiba and Vitória de Santo Antão locations will also become Mondelēz’s two largest manufacturing sites in Latin America, it added.

Global strategy

The Oreo cookie maker noted these changes are part of its global strategy.

“To ensure sustainable growth and build a world-class supply chain, the company reviewed its manufacturing footprint and has decided to intensify and optimize its multi-category manufacturing model,”​ said Mondelēz.

However, the company’s manufacturing volume in Brazil and for Brazil will remain the same and consumers will be able to continue to purchase brands, including Trident, Lacta and Sonho de Valsa, it added.

Additionally, Mondelēz said it would lay off 600 and 800 employees from its Piracicaba and Bauru factories respectively following the shutdown.

“All employees will receive a benefit package that exceeds what’s required by the law, as well as be eligible for an outplacement plan, with a solid career transition support, helping them to find a new opportunity in the market,”​ said the company.

“Additional training, job fairs and workshops will also be internally promoted,”​ it said.

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