Benzinga | Sep 3, 2021 12:25PM EDT

Kellogg Plans $45M Supply Chain Optimization In North America

* In a regulatory filing, Kellogg Co (NYSE:K) disclosed a reorganization plan for its North America supply chain network.

* The overall project is expected to result in pretax charges of $45 million.

* Expected cash costs of $25 million comprise $4 million from employee-related charges, including severance and other termination benefits.

* Non-cash costs of $20 million primarily consist of accelerated depreciation and asset write-offs.

* The plan involves shifting the production of various products to optimal lines across the Americas network.

* Kellogg expects to complete the project by early 2024.

* The company has said that no production facilities will be closed as a result of the plan.

* Price Action: K shares are trading higher by 0.32% at $63.66 on the last check Friday.