HERSHEY, Pa., Jun 01, 2010 (BUSINESS WIRE) --The Hershey Company (NYSE: HSY):
- Agreement part of strategic supply chain assessment
- Project subject to Board of Directors review, and if approved could
include a significant capital investment in Hershey, Pennsylvania
The Hershey Company (NYSE: HSY) today announced that as part of its
strategic supply chain assessment it has reached a tentative labor
agreement with the union representing employees at its 19 East Chocolate
Avenue and West Hershey facilities located in Hershey, Pennsylvania. If
the agreement is approved by the employees, Hershey's Board of Directors
will be asked to review and approve a significant modernization project
to expand the Company's West Hershey manufacturing facility into one of
the world's largest and most advanced chocolate-making facilities.
Current production in the 19 East Chocolate Avenue plant, as well as a
portion of the workforce, would be relocated to the West Hershey
facility. Additionally, the company would continue to occupy a portion
of the older 19 East Chocolate Avenue facility as administrative
offices. Decisions are expected in June and any modernization program
would employ rigorous ROI metrics to ensure that initiatives undertaken
will be value enhancing for all stockholders.
Safe Harbor Statement
This release contains statements that are forward-looking. These
statements are made based upon current expectations that are subject to
risk and uncertainty. Actual results may differ materially from those
contained in the forward-looking statements. Factors that could cause
results to differ materially include, but are not limited to: issues or
concerns related to the quality and safety of our products, ingredients
or packaging; changes in raw material and other costs; market demand for
our new and existing products; increased marketplace competition;
selling price increases, including volume declines associated with
pricing elasticity; disruption to our supply chain; failure to
successfully execute acquisitions, divestitures and joint ventures;
changes in governmental laws and regulations, including taxes;
political, economic, and/or financial market conditions; risks and
uncertainties related to our international operations; disruptions,
failures or security breaches of our information technology
infrastructure; the impact of future developments related to the
investigation by government regulators of alleged pricing practices by
members of the confectionery industry, including risks of subsequent
litigation or further government action; pension cost factors, such as
actuarial assumptions, market performance and employee retirement
decisions and funding requirements; and such other matters as discussed
in our Annual Report on Form 10-K for 2009. All information in this
press release is as of June 1, 2010. The Company undertakes no duty to
update any forward-looking statement to conform the statement to actual
results or changes in the Company's expectations.
SOURCE: The Hershey Company
The Hershey Company
Financial Contact:
Mark Pogharian, 717-534-7556
or
Media Contact:
Kirk Saville, 717-534-7641
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