Grrrreat news! Local leaders celebrate WK Kellogg Co's further investment in Battle Creek

BATTLE CREEK — Local leaders are celebrating WK Kellogg Co's decision to further invest in Battle Creek, a move that will not only retain hundreds of jobs locally but also position the company for future growth in the city.

WK Kellogg Co currently employs about 750 employees in Michigan, with nearly half of those working at its Battle Creek manufacturing facility. On Tuesday, the company announced plans to invest at least $44 million in Battle Creek, retaining 170 jobs that were previously slated to be lost from the idling of two production lines being moved to Belleville, Ontario, and creating 43 new positions, with an average wage of $2,200 per week.

“We are pleased to maintain cereal production in Battle Creek, the Michigan community where it all began more than a century ago and where it begins again with WK Kellogg Co,” WK Kellogg Co Chairman and CEO Gary Pilnick said in a statement. “We are proud to be doing so in partnership with our employees and their union, along with the support of Battle Creek Unlimited, the city of Battle Creek and the state of Michigan.”

The project is being supported by a $5 million Michigan Business Development Program performance-based grant. The Michigan Strategic Fund on Tuesday also approved a 15-year MSF Designated Renaissance Zone — which will abate property taxes by an estimated $1.27 million annually — in support of the project.

“I’m impressed with the teams at BCU and MEDC and the willingness of the WK Kellogg Co to renew its commitment here in Battle Creek," State Rep. Jim Haadsma (D-Battle Creek) said in a statement. "Michigan is winning competitions now for jobs that support families. Keeping these workers going right here in Battle Creek is grrreat news.”

WK Kellogg Co formed in October as a standalone company, resulting from the separation of Kellogg Company into two separate entities: Kellanova and WK Kellogg Co.

WK Kellogg Co is focused on the North American cereal business while Kellanova is focused on global snacking, international cereal and noodles and North American frozen foods.

WK Kellogg Co remains headquartered in Battle Creek, where it has spent the past 117 years as Kellogg Company. Kellanova, meanwhile, maintains dual campuses in Battle Creek and Chicago, with its corporate headquarters in Chicago.

In 2021, Kellogg Company announced that it would move production of some of its Battle Creek cereal plant volume to its cereal production facility in Belleville, Ontario, effective at the end of 2023, due to cheaper production costs and better efficiency. This project would have idled two of the three lines currently operating in Battle Creek and eliminated 170 jobs.

The Belleville plant subsequently underwent a $67 million expansion in the two years since the original announcement, which included financial support via incentives from the Canadian government.

Leaders of the newly formed WK Kellogg Co reconsidered the plan at the urging of Battle Creek employees and ultimately decided to retain that volume at the Battle Creek facility, where the company will now invest in more modern technology, as well as train employees in high performing work systems, making them more competitive in their manufacturing network.

This change in direction will result in $20 million in lost savings for WK Kellogg Co in its first year as well as additional lost savings in subsequent years.

"We believe as a new company and a new leadership team that this is the right thing to do, not only for the business, not only for our employees but for our community as well," Stacy Flathau, chief corporate affairs officer for WK Kellogg Co, told the Michigan Strategic Fund Board Tuesday. "It would be very difficult to do any of these things without your support. But with it, not only can we maintain these jobs in Battle Creek, but we’ll add more jobs and we will invest millions of dollars in our facility and in training our employees to better position them for future growth and development."

In addition to investing in machinery and equipment, the project will include training current employees to enable the high-performing work team model necessary to drive future success. In total, the project will retain and/or create at least 213 jobs.

“Battle Creek Unlimited applauds the leadership at WK Kellogg Co, the MEDC and the city of Battle Creek for their efforts to keep these positions in Battle Creek,” Battle Creek Unlimited President and CEO Joe Sobieralski said in a statement. “The manufacturing jobs at WK Kellogg Co’s Battle Creek facility are some of the highest-paid in Michigan. The MEDC went above and beyond to find a creative solution to support this project, which not only retains 170 jobs but also adds more than 40 new positions and sets the stage for future opportunities. We greatly appreciate WK Kellogg Co's commitment to Battle Creek and are excited for what’s to come.”

In addition to the state grant, the Battle Creek City Commission approved, and Mayor Mark Behnke signed, the application for the Renaissance Zone and Battle Creek Unlimited has offered a $250,000 grant in support of the project.

“Mayor Behnke, the City Commission and Battle Creek Unlimited have been committed to economic development innovations and investments that seek to grow and improve our Battle Creek community,” Battle Creek City Manager Rebecca Fleury said in a statement. “We are pleased to see WK Kellogg Co receive the state of Michigan's support in retaining and investing in well-paying jobs in Battle Creek and are excited to see this historic company's growth in ways that will bring the company, employees and the community future success.”

Contact reporter Greyson Steele at gsteele@battlecreekenquirer.com

This article originally appeared on Battle Creek Enquirer: Local leaders celebrate WK Kellogg Co's investment in Battle Creek