Post Holdings, Inc. announced plans to close its Post Consumer Brands cereal manufacturing facility in Lancaster, Ohio.

The planned closure of the facility reflects Post’s need to reduce capacity in its cereal production network, the company says. The Lancaster facility has approximately 200 employees and is expected to close by the end of September 2024. Facility production capabilities will be transferred to other Post Consumer Brands manufacturing locations.

Regarding the closure, Post Consumer Brands president and CEO Nicolas Catoggio says, “We are continuously optimizing our network so that we can best serve our customers and consumers. This facility closure enables Post Consumer Brands to continue offering a diversified portfolio of great products at a great value.”

The Lancaster facility has been part of the Post Consumer Brands business since June 2021, when Post acquired the TreeHouse Foods ready-to-eat cereal business.

Post Consumer Brands has engaged in discussions with the union representing employees at the Lancaster facility and has notified employees of the decision.

Post currently expects to incur cash and noncash pre-tax charges totaling approximately $49 to $55 million in connection with the transfer of production capabilities to other Post Consumer Brands locations and closure of the Lancaster facility. Completion of the transfer and startup of production at other locations is estimated to require capital expenditures of approximately $20 million, incremental to Post’s previously announced capital expenditures guidance range of $400 to $425 million, in fiscal year 2024. As a result of the transfer of production capabilities to other locations and closure of the Lancaster facility, Post expects to achieve annual cost savings of approximately $23 to $25 million, starting in fiscal year 2025.