The Hershey Company on June 1 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, Pa. 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.
