Wednesday June 16, 2010

Hershey Modernizes Supply Chain

Hershey, PA — Expanding its West Hershey plant with an investment of about $225 million, The Hershey Co.’s Next Century capital plan will allow for more cost-effective supply chain efficiencies, according to the company.

As part of the project, production will transition from Hershey’s 100-year-old plant at 19 East Chocolate Avenue to the West Hershey facility, which was built in 1992. Production from the 19 East Chocolate Avenue plant, as well as a portion of the workforce, will be relocated to the West Hershey facility.

David West, president and CEO says: “The 19 East Chocolate Avenue factory is a proud part of our heritage, but the facility simply cannot be modernized to meet the manufacturing needs of a 21st century business.”

According to the company, the new facility will produce Hershey’s Syrup, Hershey’s Milk Chocolate and Milk Chocolate with Almonds bars and Hershey’s Kisses. The Company will continue to occupy office space within the historic 19 East Chocolate Avenue location.

An additional $50 million to $75 million in distribution and administrative facilities will be developed, which Hershey says is in line with its stated strategic objectives and was unanimously approved by its board of directors.

The project is expected to be complete in 2014, Hershey says.