Aug 9, 2007 9:17 AM

Dairy Farmers of America Inc intends to close its American cheese plant in Corona CA and move its large-bag shredded and packaged American cheese business from there and its plant in Zumbrota MN to Green Bay WI-based Schreiber Foods Inc.

As a result, more than 300 workers will be laid off in Corona, 70 in Minnesota, and 11 at the firm’s Kansas City headquarters. DFA plans to offer assistance for all laid-off employees.

Effective August 31, the Corona plant will operate at reduced capacity, and production of American block cheese and whey products will be stopped by year-end.

These actions won’t affect block cheese and whey production workers in Zumbrota and Monett MO, as well as DFA’s Borden-branded or private-label retail cheese operations, according to the company.