Hershey to add more than 100 jobs with new expansion project
Laura Peters
STUARTS DRAFT — The Hershey Company will be investing millions of dollars to add 110 new jobs to its Stuarts Draft plant.
Hershey Chocolate of Virginia, which has its plant in Draft, will be investing $135 million to increase its production capacity at its existing facility by 90,000 square feet, a release said Tuesday.
“As we work to accelerate Virginia’s economic recovery, existing corporate partners like The Hershey Company are leading the way with new hiring and investment,” Governor Ralph Northam said in a release. “This major expansion is the company’s second in just over a year, and is a strong testament to the Shenandoah Valley’s ability to attract and retain high-caliber manufacturers. We thank Hershey for its continued confidence in Virginia and its people, and look forward to the company’s next chapter of growth in our Commonwealth.”
In 2019, Hershey invested $104 million for an expansion that would allow for Reese's to be made on the new product line. That expansion added 65 jobs and 111,000 square feet, which includes a separate peanut roasting operation. The 2019 plant expansion included a new, separate building that will serve as a Hershey Peanut Roasting Center of Excellence — a new manufacturing line at the plant specifically for Reese's Peanut Butter Cups.
That expansion will also add an additional 64,000 square feet onto the existing plant building. The new roasting operation will be 46,000 square feet. The expansion will increase production volume by about 15%.
Hershey Chocolate of Virginia, Inc. has operated in Augusta County for more than 30 years and employs more than 1,000 people. The Virginia facility is the company’s second-largest plant in the United States, the release said.
“The Shenandoah Valley has been an excellent place for Hershey to do business and be a part of the community for 38 years now,” said Jason Reiman, senior vice president and chief supply chain officer at The Hershey Company, in a release. “We are proud to continue to invest and grow in an area that gives our employees a great place to live and work. Increasingly, Augusta County and Virginia are critical to our company’s growth and ability to deliver iconic and beloved products to consumers around the world.”
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Augusta County and the Virginia Economic Development Partnership worked together to secure the new expansion project. Gov. Northam approved a $1.1 million grant from the Commonwealth’s Opportunity Fund to assist Augusta County with the project, the release said.
“The Hershey Company’s remarkable continued investment in Augusta County is a testament to the company’s dedication to improvement, modernity, and our workforce,” said Gerald Garber, chairman of the Augusta County Board of Supervisors, in a release. “The strengthening of Hershey’s supply chain within Augusta County and the Shenandoah Valley, along with the upcoming Peanut Roasting Center of Excellence, illustrates the strengths of our region and the opportunity for growth that we offer.”
The Stuarts Draft plant makes products like Reese's, Reese's shapes, Mr. Goodbar, Almond Joy and more.
“Hershey’s dedication to increasing jobs comes at a critical time,” said Steve Morelli, Augusta County Board of Supervisors member for the South River District where the facility is located, in a release. “The company’s expansion means more career opportunities when many may be looking for work, a different career path, and a way forward. We are thankful for Hershey’s choice to expand in Augusta County.”
The governor also approved a performance-based grant of $500,000 from the Virginia Investment Performance program, an incentive that encourages capital investment by existing Virginia companies, the release said. Funding and services to support Hershey’s job creation will be provided through the Virginia Jobs Investment Program, the release said.
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“Hershey is a phenomenal community and state partner,” said Sen. Emmett Hanger. “Bringing new jobs to our area at this time is critical and builds on the well-established business strengths that benefit our citizens and tax bases. We are proud to continue working with Hershey to ensure they expand here in the Valley.”
The Hershey Company is the leading North American chocolate producer and global snacks company and is headquartered in Hershey, Pennsylvania. Hershey has approximately 16,500 employees and more than 80 brands that drive $8 billion in annual revenues, including Hershey’s, Reese’s, Kit Kat, Jolly Rancher, IceBreakers, SkinnyPop and Pirate’s Booty, the release said.
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You can reach reporter Laura Peters at lpeters@newsleader.com. Follow her @peterslaura.