Indiana town faces closure of ex-Pillsbury plant

LOUISVILLE, Ky. — A General Mills-Pillsbury plant in southern Indiana could close by mid-2016, a move that could lead to more than 400 workers being laid off.

The decision is pending negotiations with union officials, said Bridget Christenson, a General Mills spokeswoman, who declined to discuss possible closure alternatives.

The plant in New Albany just north of Louisville manufactures a variety of refrigerated baked goods such as crescent rolls and pizza dough and has been operated by General Mills for more than a half century. It has consistently been among the city's steadiest employers over the years.

Christenson said the proposal to shutter the plant followed a June review of its North American supply chain network as it aims to "optimize" operations.

"It's really all about excess capacity in our supply chain network," she said.

It remains unclear whether the company will provide severance packages or allow workers to relocate.

Company officials hope to finalize the proposed decision soon after scheduling meetings with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union Local 33G. It represents 335 hourly employees at Pillsbury, as well as 80 at neighboring Sunoco Products, which delivers paper and metal cans for the dough products by conveyor.

Roger Miller, union president of the Local 33G, said union officials had no warning what was coming.

Miller said that its four-year contract with the company signed last April requires the company to give the union the opportunity to bargain for keeping some local operations before any decrease in workers.

Still, Miller isn't convinced jobs can be saved there.

"I don't think there's anything we can do to keep it," Miller said.

New Albany Mayor Jeff Gahan called it "a very sad day" hours after talking with company officials.

The news was met with shock, and a sense of loss.

"You're sad, you can kind of liken it to a death in the family," Miller said.

Gahan said he has not given up hope that a team of city and state economic development leaders could meet with General Mills officials and work out a way to save the plant.

Indiana economic development officials provided more than $100,000 in incentives in the last 10 years to ensure General Mills kept its workforce of about 480. But over the last three to four years, the company shifted manufacturing of some product lines to its more modern plant in Murfreesboro, Tenn.

Contributing: Kirsten Clark of The Courier-Journal