Parent Company Kraft Heinz Lands Agreement With Governor Cuomo And Senator Schumer In New York
New York — Governor Andrew M. Cuomo and U. S. Senator Charles Schumer announced in a press release that an agreement has been reached to save at-risk Kraft-Heinz facilities. The Kraft Foods plant in Campbell has been facing a possible closure which threatened about 380 local jobs, according to a national media report (source: The-Leader.com). The Campbell plant which manufactures string cheese and Italian cheeses was scheduled to close by the parent company, Kraft Heinz.
According to Governor Cuomo announcement, the parent company Kraft Heinz Corporation will preserve a significant amount of workers, nearly 1,000, to pave the way under this new agreement to delay the Campbell Plant Closure for 12-24 months while the Company works out another new owner. Governor Cuomo and U.S. Senator Schumer will commit to invest up to $50 million along with the parent company Kraft Heinz to continue to operate the Campbell plant to identify a new agreement to retain the plant’s existing employment. Also under this agreement, Kraft Heinz will operate the Avon, Walton and Lowville plants which are committed to growth and investment.
The State of New York and Kraft Heinz will also commit to invest at least $20 million more dollars to modernize the Upstate operations. Governor Cuomo stated, “The prospect of these across the board closures was very real and not only would have been devastated these communities, but caused ripple effects in New York’s dairy industry and beyond. This agreement reverses course and, saves hundred s of local jobs and commits Kraft-Heinz to invest millions of dollars in the Upstate economy, with the potential for job increases in the years to come. I thank Senator Schumer and Kraft-heinz for working with us to protect jobs in these communities and help ensure the future of each of these plants.”
Senator Schumer stated, “After any merger that involves an important Upstate company like Kraft that employs so many hundreds of workers and supports so many dairy farmers, I worry about any potential negative impacts on our Upstate New York jobs. New York Kraft factories in Avon, Walton, Campbell and Lowvill were in the crosshairs, and thousands of families were at severe risk of losing their jobs. But working together with Governor Cuomo we were able to craft a deal with Kraft Heinz that saves these factories from closure; that protects jobs; and that invests in growth for our future in each of these communities. It’s a win-win deal that will be good for Kraft Heinz and good for retaining and growing jobs in Upstate New York.”
This agreement reached today between Kraft Heinz and New York State will dramatically reduce 939 planned layoffs over the next 12-24 months just in time for the Christmas season. Over the next 5 years, the agreement will cap the net job reduction to eliminate the potential sale of the Campbell facility and the expansion of the Avon facility. It was announced that this agreement comes after the merger of Kraft and H.J. Heinz Company that is engineered by 3G Capital this summer. The initial plan was to merge with an internal company to review the facilities at Avon, Walton and Campbell that were in line for closure to reduce total employment by 939 jobs and leaving Lowville as the only company’s facility in New York State. Governor Cuomo and Senator Schumer both express urgency in the retainment of jobs for the State and to collaborate a deal to save as many jobs as possible to ensure future investments and growth.
For more information on this release please contact: Executive Chambers at
press.office@exec.ny.gov or call 518-474-8418