Hershey Unveils World’s Most Modern Chocolate Plant in Birthplace of the Hershey’s® Milk Chocolate Bar
$300 Million Investment in New State-of-the-Art Facility Producing
World-Famous and Beloved Brands
HERSHEY, Pa.--(BUSINESS WIRE)--Sep. 18, 2012--
The Hershey Company (NYSE: HSY):
EXPANDS MANUFACTURING FOR ICONIC HERSHEY BRANDS:
Plant in Hershey, PA, is new ‘home’ for Hershey’s® Bars, Hershey’s®
Kisses® Chocolates, Hershey’s® Syrup and Rolo® Candies
LARGEST CAPITAL INVESTMENT IN DECADES:
$300 million investment in latest manufacturing technology continues
Milton Hershey’s dedication to innovation, quality and excellence
NEW PLANT TO HAVE +$1 BILLION IMPACT ON
PENNSYLVANIA ECONOMY OVER THE NEXT FIVE YEARS: Significant
forward-looking advantages to the region’s economy with jobs, supplier
contracts and related spending that benefit the region and entire state
The Hershey Company (NYSE: HSY) today announced that the world’s most
technologically advanced chocolate making facility – a $300 million
investment in Hershey, Pa., that positions the company for its next 100
years of global growth – is officially “open for business.”
The new facility features proprietary, state-of-the-art technology never
before used in the manufacture of confectionery. The new technology was
developed specifically for the plant, including highly automated,
large-scale Hershey’s Kisses Chocolate operations. The
plant’s advanced Information Technology systems include automated,
real-time diagnostics systems to help keep operations running smoothly
24 hours a day.
The expanded West Hershey facility is one of the company’s largest
capital investments and represents one of the largest construction
projects in Pennsylvania in two decades. Today’s formal opening
highlights Hershey’s strategy to grow its business globally while
remaining true to its heritage and values, grounded in more than a
century of chocolate making and confectionery innovation in Hershey, Pa.
“Today, we are celebrating our proud Pennsylvania heritage, the growing
popularity of Hershey products in global markets, our continuing
investments in productive technology and our great workers who make it
possible to enjoy these iconic products,” said John P. Bilbrey,
President and CEO, The Hershey Company.
“Hershey employees built this dynamic business during the first century
of chocolate making in Hershey starting in 1905. Today, we honor each of
those individuals and our history and applaud those who designed, built
and operate our Factory of the Future. They continue to produce the
finest chocolate confectionery right here in Hershey, Pa., where it all
began. Together, we are securing the next century of growth for this
iconic company.”
As a major employer in the state, the West Hershey plant is expected to
contribute more than $1 billion to the economy of Pennsylvania over the
next five years through supplier contracts, payroll and related spending.
Pennsylvania Governor Tom Corbett commented, “I am working as Governor
to ensure there is a job for every Pennsylvanian that wants one and an
educated Pennsylvanian for every one of those jobs. I am proud the
Commonwealth was able to partner with Hershey as they grow, evolve,
create jobs, train great employees and continue their commitment to
Pennsylvania’s prosperity.”
Investing in Pennsylvania to Grow Globally
The new 340,000 sq. ft. expansion at West Hershey is located less than
two miles from the company’s original chocolate factory opened in 1905
by Milton Hershey. Key features include:
-
the latest manufacturing technology and proprietary candy
manufacturing equipment that speeds production, delivers consistent
high quality and provides the opportunity to produce new products in
the future.
-
high-speed, high-tech new production lines with the capacity to
support Hershey’s growing business now and well into the future. This
includes the most technologically advanced, automated chocolate syrup
production lines in the world.
-
new Hershey’s Kisses Chocolate lines that can produce more than
70 million Hershey’s Kisses Chocolates per day
The expansion is Pennsylvania’s single largest manufacturing investment
since the construction of the original West Hershey plant in 1991. The
new development infused $70 million into the Pennsylvania economy and
created more than 300 construction jobs.
The plant’s workforce includes about 700 employees who transitioned from
the original Hershey plant on East Chocolate Ave. – the company’s oldest
facility, which ran continuously from 1905 until its retirement in April
2012.
Hershey’s manufacturing presence and investments bring significant
economic benefit to the local and regional economies.
-
Hershey’s $300 million investment is the largest direct investment by
a food manufacturer in Pennsylvania in the last 20 years. Hershey’s
Project Next Century included about $25 million in materials and
supplies sourced in Pennsylvania.
-
With 4,800 employees in Pennsylvania, 8,800 in the United States and
14,000 worldwide, The Hershey Company is the
third-largest manufacturer in the state.
-
Hershey trained approximately 700 employees to prepare them to work in
the plant’s high-tech manufacturing environment.
-
The West Hershey plant includes stainless steel corn syrup and fresh
milk silos with the capacity to hold millions of pounds of fresh
ingredients. All of the silos were manufactured in Lancaster County,
Pa.
Building on Hershey’s Innovation Heritage
More than a century ago, Milton S. Hershey revolutionized the chocolate
industry by making chocolate an affordable treat and building a company
focused on delighting consumers. The new West Hershey plant continues
Milton Hershey’s passion for using innovation, technology and
inspiration to make great candy accessible, affordable and delicious.
Work on the latest expansion began with groundbreaking in September 2010
and was completed on schedule earlier this year. The construction used
17,000 yards of concrete, equivalent to a 65-mile long sidewalk.
Contractors installed 600 tons of reinforcing steel, 10 miles of utility
piping and 1,900 gallons of paint.
“The West Hershey facility is a testament to the commitment and
dedication of our tremendous plant employees,” said Terry O’Day, Senior
Vice President, Global Operations. “I am proud of how our people have
adapted quickly and recognized the opportunities provided by the latest
technology. They contribute directly to improved quality, speed and
efficiency. They truly represent the manufacturing employees of the
future, operating one of the most technologically advanced candy
factories in the world.”
The plant represents major investments in logistics, computer technology
and employee facilities. State-of-the-art, computer-controlled
manufacturing processes include software and machinery developed and
adapted by Hershey’s production line operators and managers. The new
plant continues Hershey’s tradition as one of the few chocolate
manufacturers to use fresh, liquid milk to ensure consistent high
quality. There is also a fresh almond roasting plant onsite.
The plant also continues The Hershey Company’s commitment to
sustainability and the environment. The building expansion was a “Zero
Waste to Landfill” (ZWL) construction project and the plant will
continue to operate as a ZWL plant.
The expansion at West Hershey is the largest component of Project Next
Century – a program to modernize and upgrade Hershey’s global supply
chain and ensure a competitive cost structure. Other recent investments
in Hershey, Pa., include $50 to $75 million in upgrades to distribution
and administrative facilities.
West Hershey is one of the company's eight manufacturing sites in the
United States. Locations include: Hazleton, Pa.; Stuarts Draft, Va.;
Memphis, Tenn.; Lancaster, Pa.; Robinson, Ill.; Ashland, Ore. and the
Reese’s plant in Hershey, Pa.
About The Hershey Company
The Hershey Company (NYSE: HSY) is the largest producer of quality
chocolate in North America and a global leader in chocolate and sugar
confectionery. Headquartered in Hershey, Pa., The Hershey Company has
operations throughout the world and approximately 14,000 employees. With
revenues of more than $6 billion, Hershey offers confectionery products
under more than 25 brand names, including such iconic brands as Hershey's,
Reese's, Hershey's Kisses, Hershey's Bliss,
Hershey's Special Dark, Kit Kat, Twizzlers, Jolly
Rancher and Ice Breakers. Hershey also offers premium and
artisan chocolate products under such brands as Scharffen Berger
and Dagoba through the Artisan Confections Company, a wholly
owned subsidiary. The company is focused on growing its presence in key
international markets such as China and Mexico while continuing to build
its competitive advantage in the United States and Canada.
For more than 100 years, The Hershey Company has been a leader in making
a positive difference in the communities where its employees live, work
and do business. Corporate Social Responsibility is an integral part of
the company’s global business strategy, which includes goals and
priorities focused on fair and ethical business dealings, environmental
stewardship, fostering a desirable workplace for employees, and
positively impacting society and local communities. Milton Hershey
School, established in 1909 by the company's founder and administered by
Hershey Trust Company, provides a quality education, housing, and
medical care at no cost to children in social and financial need.
Students of Milton Hershey School are direct beneficiaries of The
Hershey Company's success.
Source: The Hershey Company
The Hershey Company
Media Contact:
Jeff Beckman, 717-534-6247