Nabisco Moves to Mexico: Are US Subsidies to Blame? James Anderton - Engineering.com
go to original April 10, 2016

Illinois-based Mondelez International, the maker of Nabisco brand products, is moving production of the firm’s iconic Oreo brand cookies to a new facility in Mexico.

Half of the 1,200 employees in the current Chicago facility will lose their jobs. According to Nabisco, the decision not to proceed with a USD$130 million upgrade to the plant, which is the company’s largest U.S. bakery operation, was made because the three unions representing plant workers didn’t accept wage and benefit concessions.

Seven lines in the 60-year-old plant will be upgraded, with nine lines moving to Salinas, Mexico. The south-of-the-border operation will make Oreo cookies, as well as Ritz and Graham crackers.

According to Nabisco, the new lines can produce twice the output of the old equipment with half the floor space, therefore saving the company USD$46 million per year compared to the Chicago operation.

With savings like that, will the rest of the US workforce be safe?

Read the rest at Engineering.com

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