Kraft to downsize plant in Pennsylvania

Kraft Foods plans to stop making its processed cheese manufacturing line at its Upper Macungie PA plant in 2008. This line of products includes individually wrapped Kraft Singles and other processed cheese products. It employs 213 hourly and 21 salaried workers--more than 40 percent of the facility’s 555 workers.

Natural cheese products including shredded cheese and cheese cubes will continue to be produced at the 1 million-square-foot plant.

In summer 2008, Kraft will transfer its processed cheese production to three Midwest plants with new equipment to produce cheese more efficiently.

Higher costs for ingredients and competition from other brands have led Northfield IL-based Kraft to downsize in the past two years. In 2006, the food and beverage company announced it planned to eliminate 8,000 jobs and shut 20 plants worldwide.