WALTON – On Thursday, Assemblyman Clifford W. Crouch (R-Bainbridge) joined Gov. Cuomo and U.S. Sen. Charles Schumer to announce that a deal has been reached with H. J. Heinz Company and Kraft Foods, Inc. to keep the Kraft plant in Walton open.
Crouch noted that the $20 million deal will aim to modernize the upstate operations and keep all three Kraft plants in New York State open for at least five years.
“I want to thank Kraft-Heinz for its consideration of this very serious matter, but I also want to commend Gov. Cuomo and Sen. Schumer for their leadership and cooperation on this deal,” said Crouch, who recently advocated for the plant to remain open. “This was all about keeping the 141 local manufacturing jobs in Walton and the economic development of the area. With the Village of Walton’s plans to seek other cost-saving measures, it only makes sense that this plant must stay open.”
According to the agreement in the governor’s press release, Kraft-Heinz will reverse the planned closure of the Walton facility in Delaware County. The Walton facility employs roughly 141 people and produces cottage cheese and sour cream. The agreement reached will save the Walton plant and all 141 jobs for at least five years, ensuring there are no layoffs or reductions at the facility.
The agreement also includes plans for a matching capital investment from both Kraft-Heinz and New York State in the company’s Avon, Walton and Lowville operations. The state’s investment will be initially capped at $20 million over the next five years, provided the company also invests $20 million. If after those five years Kraft-Heinz has not decreased its aggregate employment in New York State, and has invested at least $25 million in its upstate operations, Empire State Development will invest an additional $5 million, bringing the combined total investment to at least $50 million in Upstate New York.
When asked about the five-year plan, Crouch said, “I don’t think it’s really a concern. Once the Village of Walton gets the methane digester project underway and online, the immediate cost savings to Heinz-Kraft, the village school district, and the taxpayers will be considerable. In that time frame, there will be other opportunities to cut operational costs without losing employment at that facility. It’s really a win-win, and I am thankful for the deal.”
Crouch said the methane digester project is being pursued by the Village of Walton through the Regional Economic Development Council, and is on the preferred list for being approved. Currently, methane gas is transported out of Walton to another town for processing. Crouch said the project is an all-around cost saver for taxpayers, the school district and Kraft. A methane digester would enable local processing of methane gas, ultimately saving Kraft on transportation, shipment, processing and energy costs; and with the additional construction of a pipeline with the grant, the school district would save on heating costs as well, ultimately saving taxpayer dollars.