Three Companies Investing $52.6 Million to Re-Open Nestle and Sonoco Plants

STATE OF NEW YORK EXECUTIVE CHAMBER GEORGE E. PATAKI, GOVERNOR Press Office 518-474-8418 212-681-4640

http://www.state.ny.us

FOR RELEASE: IMMEDIATE
12/10/2003

GOVERNOR PATAKI HAILS 630 NEW JOBS FOR THE CITY OF FULTON

Three Companies Investing $52.6 Million to Re-Open Nestle and Sonoco Plants

Governor George E. Pataki today announced that two companies, The New York Chocolate and Confections Company and Spear USA, LLC, will create 430 new jobs and invest $46.25 million in the City of Fulton, re-opening the city’s former Nestle plant and the Sonoco Flexible Packaging facility.

Today’s news is in addition to the Governor’s October 8^th announcement of 200 new jobs and an intended $6.375 million investment by the Fulton Chocolate Company at the former Nestle plant.

“We’ve worked hard to bring these 630 jobs to Fulton,” Governor Pataki said. “Upstate New York has a bright economic future anchored by our tremendous workforce and business-friendly policies that attract companies such as these to create jobs here. We have worked to keep taxes and business costs down so that we can continue to compete and win these jobs and new investments.”

The New York Chocolate and Confections Company, a new company formed by the cocoa bean producer's cooperatives of the Republic of Cote d'Ivoire (the Ivory Coast), in a joint venture with Lion Capital Management Group, intend to invest $40 million in the former Nestle facility where they will manufacture cocoa, cocoa butter, bulk and flake chocolate. The company will initially occupy approximately 250,000 square feet of space. Project costs include building renovations, equipment purchases and necessary site work. The company expects to hire 373 people within the first three years of operation.

Senator Jim Wright said, "This is wonderful news for the City of Fulton and Oswego County. The long history of chocolate making and packaging attracted these companies to Fulton, but the quality of local workers sealed the deal. This was a team effort from local employees to city and county officials up to Governor Pataki. I applaud everyone for their hard work and welcome these three new companies to Fulton."

Assemblyman Will Barclay said, "Over the past year, the City of Fulton has been hard hit by job losses as a result of factory closings. Fortunately, due to the leadership of Governor Pataki and the assistance of ESDC, Fulton is on the verge of recovering from these losses. I salute the Fulton Chocolate Company, the New York Chocolate and Confections Company and Spear for making a commitment to begin business in the City of Fulton, and I look forward to working with these businesses to help them prosper in years to come."

As previously announced by the Governor, a new business entity, the Fulton Chocolate Company, will make a $6.375 million investment in approximately 140,000 square feet of space at the former Nestle plant. The company will create 80 new jobs within one year and 200 new jobs within three years. They will manufacture a variety of candy bars and a product line of zero-carbohydrate bars.

The third company, Spear, will invest $6.25 million to expand its U.S. operations into New York State. The company will lease the Sonoco Flexible Packaging facility and will hire 60 workers within three years. Many of these new jobs are expected to be filled by former Sonoco employees, otherwise scheduled for layoffs as that company closes in early 2004. Spear manufactures prime, pressure sensitive labels for the beverage, food and personal care industries.

Dr. Ousmann-A Gbane, Principal & Chief Investment Officer of Lion Capital Management Group, said, “I can say without reservation that this is truly a unique structure at a unique place – Something no one has done before in this industry. To be able to bring a consortium of cocoa producers as direct investors to the business of manufacturing fine chocolate with the already trained labor available at the oldest chocolate manufacturer is wonderful. By building on the strength of the Cote-d’Ivoire cocoa producers and Fulton chocolate labor market reputation and savior faire in the chocolate industry, we intend to bring our global expertise and innovation to this business. This will enable us to better serve existing customers and attract other world-class customers to the American marketplace, creating opportunity for the entire sector.”

Richard Duffy, Chief Executive Officer of Fulton Chocolate Company said, “We are excited to be here to help usher in a new era of chocolate making for Fulton. We are here because the people have a 100 year heritage of chocolate making and have the tremendous experience and expertise to make a major impact on the entire chocolate industry.”

Michael Stafford, Mayor, City of Fulton said, “This is a tremendous announcement for the City of Fulton. The creation of these additional jobs will help the city turn the corner towards improving economic growth and the quality of life. I want to thank Governor Pataki and everyone involved for their investment and commitment to see the Nestle and Sonoco plants re-open."

Morris Sorbello, Chairman, Oswego County Legislature said, “Thank you to Governor Pataki, Mayor Stafford, ESD, Oswego County IDA, and all the companies involved for their support, commitment and investment to our region. This is another great opportunity to improve on the existing infrastructure and move towards building a strong economy for the City of Fulton and the County of Oswego."

L. Michael Treadwell, CEcD, executive director of Operation Oswego County, said, “The city of Fulton and Oswego County will soon benefit from the reutilization of two major manufacturing facilities in Fulton is a true testament to the dedication and partnership between Empire State Development, Niagara Mohawk, the County of Oswego IDA and our other federal, state and local elected officials and community partners. The reuse of the Nestle and Sonoco facilities provides not only a significant economic impact associated with re-establishing jobs that were lost due to the plant closures, but in addition, it creates the potential to generate additional jobs and economic stability for the future. We are fortunate that the Fulton Chocolate Company, Lion Capital Management and Spear Corporation have chosen to locate their manufacturing operations in Oswego County."

Charles A. Gargano, Chairman of Empire State Development (ESD), said, “These projects clearly demonstrate the effectiveness of Governor Pataki’s economic programs and our ability to attract new investment and jobs to the Upstate economy. This announcement of more than 600 jobs for the City of Fulton is outstanding news and speaks to our proactive work to recruit new business."

In consideration of its commitment to the New York State economy, these three companies will receive assistance from Empire State Development. The New York Chocolate and Confections Company is eligible to apply for a $1 million capital grant, while Spear is eligible for a $225,000 capital grant. As previously announced, the Fulton Chocolate Company is eligible to apply to ESD for a $500,000 capital grant.