Posted on 04/24/2007 8:21:11 AM PDT by Wolfie
Hershey to Close Reading, Pa., Plant
The Hershey Co., the nation's leading candy maker, said Monday that it will shut down a plant in Reading as part of a wider move to cut labor and materials costs.
The closing, which will affect about 260 unionized employees, is the company's second plant-closing announcement in a little over two months.
"Our network operates at less than half of capacity (over seven days) and we must make significant changes to remain competitive," Hershey (nyse: HSY - news - people ) spokesman Kirk Saville said.
Saville said the company would work out severance agreements with the workers and close the plant in 2008. Hershey is looking to shift more manufacturing to India, China, Mexico and contractors in the United States, and has already announced it will cut up to 900 of the 3,000 workers from three plants in its hometown.
Hershey originally purchased the Reading plant from the Dietrich Corp. in 1987 and brought aboard the Luden's cough drop brand and the Fifth Avenue chocolate bar.
The plant also makes York Peppermint Patties, Reese's crispy crunch bars and Jolly Ranchers. The plant is about 40 miles east of the company headquarters in the town named for the chocolate magnate, Milton S. Hershey.
I’m not in bed with the communist Chinese. I am in favor of allowing Hersheys to do with its capital what it sees fit. Did you get a chance to look at my #171? You might think I am “in bed” with communists, but I certainly don’t sound like one. What’s your excuse?
In what may come as a complete shock to my detractors (but they are easily shocked), I have not purchased a Chinese product since the Tiananmen Square massacre with the exception of two items during two separate emergencies. I don’t eat Hershey’s chocolate, either. It’s crap. Try chocolate made with real sugar.
OMG, I almost missed this one. You think quoting your words back at you is a “strawman?” Hang on while I attempt to follow your logic. I might have to call in the Logic NTSB, because it’s a wreck.
But I think there is another issue at play that is even stronger. I think the bottom line has more to do with sugar costs. Our government’s continual protection of our ag business keeping sugar costs ungodly high compared to outside the U.S. has got to be a killer for Hershey.
The Dept of Agriculture is by far the largest “welfare” project this country has ever seen. And ... it is stronger than the “third rail” socsh sekuritee. I.e ...it is untouchable.
Milk chocolate relies on 2 main ingredients ...not chocolate ... milk and sugar.
Unskilled labor? Owed? Owed by whom? Socialism by the private sector is more accurately called `facism.’
There’s another factor: Who is buying candy bars these days? The candy plant must be a money-loser, which is why these companies diversify.
Plus, this plant in Reading must have been a waste for a long time with the Hershey plant so nearby.
Good grief. OK genius, show me anywhere on this thread where you “quoted” me. Otherwise, take a hike. Blackbird.
People have been dancing around the sugar issue because it means they’d have to recognize that, when the government picks “winners,” it creates “losers” as well.
And, frankly, why should Americans be making shoes? Americans should all have studied hard in our overpriced schools so that they aren’t unskilled and can get high-order jobs that require calculus.
I’m American. What’s your excuse? Blackbird.
There are many factors, of course. But behind every closed plant, there’s a union lurking somewhere.
The other plant Hershey’s is closing (and proudly announcing they are moving jobs to Mexico) is in Ontario. Sugar costs in Canada are at the world price not the inflated U.S. price.
I think these plant closings are just the signs of bad management. Consumers are going to find out that Hershey’s is Chinese or Mexican produced and look for alternatives and ultimately these moves will cost Hershey far more in the long run.
I’ve already stopped buying Hershey products but that is a personal decision not part of any boycott.
I guess that makes me a genius, or you not very bright. Take your pick.
More likely, Hershey suffers from the same deadly sin as most other un-American corporations, GREED!
74 posted on 04/24/2007 9:58:35 AM PDT by BlackbirdSST
That's your excuse for sounding like a Commie? LOL!
If that quote refers to the "Country of Origin" (COOL) provision of the Farm Security and Rural Investment Act of 2002, chocolate isn't covered. The only foods covered now (due to two delays)are unprocessed fish and shellfish. In 2008 (if it's not delayed again), the labeling will be mandatory on "muscle cuts of beef, lamb, and pork; ground beef, ground lamb, and ground pork; perishable agricultural items and peanuts."
If any of the above foods are processed (such as canned tuna fish, creamed frozen veggies, breaded fish) they needn't be labeled, and neither do foods served in restaurants.
The Pat-sies are certainly out. That’s a pretty good article.
Everyone says Hersey’s is not great chocolate. I’d take that over more fancy stuff.
STUPID STUPID STUPID response. Companies like Hershey have stayed here as long as they possibly could, dealing with taxes, regulations, environmental restrictions, inspectors and lazy ass, litigious American workers.
We have done the functional equivalent of a whiney, tyrannical screeching spouse who verbally abuses their mate telling them over and over that they never should have married them, hate them, and wish they would leave. Eventually, the spouse says "OK, I will leave, then."
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.