State and Kraft-Heinz Commit to Invest Up to $50 Million for Upstate Factory Upgrades

Statement

Governor Andrew M. Cuomo and U.S. Senator Charles Schumer today announced that an agreement has been reached to save at-risk Kraft-Heinz facilities which employ nearly 1,000 workers throughout Upstate New York. The agreement will ensure that Kraft-Heinz preserves a significant employment base throughout New York State for years to come and paves the way for additional investment and growth at a number of Kraft-Heinz facilities. Under the agreement, Kraft-Heinz will continue operating the Avon, Walton and Lowville plants. Additionally, Kraft-Heinz will defer its planned closure of the Campbell plant for a period of 12-24 months, during which time the company will work with state, federal and local officials in an effort to identify a new operator who would retain the plant's existing employment. The State and company are also committing to each invest at least $20 million to support and modernize Kraft-Heinz's Upstate operations.

Governor Cuomo said: "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 hundreds 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 said: "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 Lowville 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."

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