Hershey a Step Closer to Plant Expansion - TheStreet

Hershey a Step Closer to Plant Expansion

Hershey has struck a tentative labor agreement with union representatives for employees at two of its Hershey, Pa. facilities.
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NEW YORK (TheStreet) -- Hershey (HSY) - Get Report has struck a tentative labor agreement with union representatives for employees at two of its Hershey, Pa. facilities, potentially paving the way for significant expansion at the chocolate maker's West Hershey manufacturing facility.

Hershey directors will be will be reviewing and approving the expansion once the employees from both facilities have approved the agreement. The company says decisions are expected in June.

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The company says expansion at the West Hershey facility would create one of the world's "largest and most advanced chocolate-making facilities."

As part of the labor agreement, production at Hershey's 19 East Chocolate Avenue plant, and part of the workforce there, would be moved to the company's West Hershey facility.

Also, Hershey would continue to use part of the older 19 East Chocolate Avenue facility as administrative offices.

The company has assured that any steps carried out in the expansion would be beneficial to stockholder value.

Hershey stock is up 2.3% to $47.89 in midday trading, and one of the biggest gainers on the S&P 500 Index.

-- Reported by Andrea Tse in New York

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