Walker: Wisconsin policies not a factor in Oscar Mayer closing

The closings are part of a downsizing that will shed 2,600 jobs or 14 per cent its North American factory workforce, Kraft Heinz said Wednesday.

The other six cities with plants on the chopping block include: Fullerton and San Leandro, California; Federalsburg, Maryland; Lehigh Valley, Pennsylvania; Campbell, New York; and St. Marys, Ontario.

Kraft Heinz announced Wednesday its plans to move operations to a new $203 million facility in the Eastern Iowa Industrial Park in north Davenport.

“There has never been a better time in this community for this to happen, because all the relationships are in place to make the transition for the workers as quickly as possible”, said Schramm.

Oscar Mayer headquarters was moved from Chicago to Madison in 1957, according to the company website. Heinz, backed by Buffett’s Berkshire Hathaway Inc (BRKa.N) and Brazilian private equity firm 3G Capital – known to be an aggressive cost-cutter – combined with Kraft in a $US46billion ($F96b) deal in March.

H.J. Heinz acquired Kraft Foods Group in March to create the third largest food and beverage company in North America.

The company said about 250 corporate jobs in the Oscar Mayer and US meat business unit will be relocated from Madison, Wis., to Chicago.

The state’s investment will initially be capped at $20 million over the next five years provided Kraft-Heinz also invests $20 million.

Madison- In the wake of the announced closure of Oscar Mayer, Wisconsin Gov. Scott Walker said Thursday he is reaching out to corporate parent Kraft Heinz Co. but declined to say if his administration had done so after the iconic meat processor shed jobs here in August. That’s part of a restructuring plan to save $1.5 billion in operating costs by the end of 2017.

“We’re going to see more of this”, Durham said. During a news conference, Soglin compared the closure to General Motor’s decision to close its Janesville plant in 2009. Kraft Heinz representatives say 475 jobs will be retained and there will be job losses. Bruce Berger, director of Davenport’s economic development office, said officials empathized with employees who would be affected.

Mullen expects there will be job losses in Champaign due to the move which will take approximately 24 months to complete.