Kellogg is continuing a plan to integrate snack-maker Keebler, which it purchased three years ago. About 300 employees will be affected by the move. Nearly all will be offered the option of transferring to Battle Creek, where the cereal company is based, Kellogg says.

"We've seen so many jobs leave," Michigan Gov. Jennifer Granholm said during a news conference. "To actually be able to woo a division of a corporate headquarters from Illinois to Michigan is great news."

The Michigan Economic Development Corp. offered Kellogg a Single Business Tax credit worth approximately $3.7 million over the next five years to relocate the headquarters to Michigan. Kellogg also will receive local assistance and possibly be granted a five-year tax-free Michigan Agricultural Renaissance Zone worth about $16 million, the governor adds.

Carlos Gutierrez, chairman and chief executive officer, said affected employees were notified last week. He adds it is too soon to know how many will accept transfers to Battle Creek.

Employees probably will start relocating in a couple of weeks. Kellogg hopes to complete the move by the end of summer, before the beginning of the new school year, Gutierrez says.

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