Officials cautiously optimistic about chocolate plant

Officials cautiously optimistic about chocolate plant
by Andrew Henderson

March 15, 2006

National Grid has turned off the gas to the New York Chocolate & Confections plant in Fulton, but city and county officials remain cautiously optimistic that chocolate will eventually be produced at the former Nestle plant.

Because of outstanding debt to National Grid, the power company shut off natural gas to the plant last week. The chocolate company also owes a substantial amount of money to the Oswego County Industrial Development Agency as well to the City of Fulton.

Even with the surmounting debt and the suspension of utilities, New York Chocolate CEO Jean-Claude Amon said he is still expecting funding from the company's investors in the Ivory Coast. New York Chocolate is poised to launch chocolate production immediately, he said, but there has been a delay in funding from the African country.

According to Amon, trade and agricultural regulations have changed as a result of governmental transition in the Ivory Coast, which has had a direct impact on operations at the New York Chocolate plant.

Amon noted that the company does not plan to leave Fulton or close for good. He said that the Cocoa Board, which is comprised of cocoa-bean growers in the Ivory Coast, recently stressed the commitment of the shareholders to solve the financial situation of New York Chocolate.

The shareholders, Amon said, have funded $26 million to operate the plant and keep the 75 workers on the payroll. There are no plans for layoffs or for terminating employment contracts, he added.

"On the other hand, we urgently need this funding to purchase product and address the arrears we've incurred due to this delay before we are able to begin production," Amon said. "We are very close to a permanent solution and expect funds to be transferred in short order.

"We are committed to meeting our longterm goals of bringing full-fledged chocolate production back to Fulton," Amon stressed.

Fulton Mayor Daryl Hayden said Monday morning that the city was expecting to turn off the water.

"There are three-fourths copper lines going into the factory," said Mayor Hayden, who worked at the plant for Nestle for more than 30 years. "It's supposed to be back down in the low 30s and 18 at night. We want to protect ourselves. If we are ever going to take that factory back, I would rather not have the water lines let loose in there."

New York Chocolate owes the city more than $500,000 in taxes. " They are assessed at $10 million and so it is around $52 per $1,000 if you add all three (city, county, and school tax rates). That comes out to more than $500,000 right there alone. Then, they owe money for water," the mayor said.

He also expressed hope that the company does receive the money to pay off its debt. "Before I was worried; I'm more than worried this time," he said. "My gut feeling is that this could be the end of New York Chocolate, but I hope I am wrong. Chocolate production in Fulton is a part of our history. Chocolate has always been in the City of Fulton since the early 1900s."

Oswego County Legislature Chairman Russ Johnson said he has been watching closely the events unfold at New York Chocolate.

"I've been there with many other local, state, and federal representatives as we have seen high times through public announcements of impending major production, with hundreds of local employees projected to make it happen, to the few scary times when we have seen the company near the brink of closure," Johnson said.

"One thing that remains constant, however, is that New York Chocolate's CEO Jean-Claude Amon is determined to make the air in Fulton smell sweet again," he added.

"He strikes me as a courageous man with a huge heart-one who will not rest until the company and community succeed. That is precisely what we need in Fulton and Oswego County, and we must continue to do whatever we possibly can in government to help New York Chocolate achieve its goals."

New York Chocolate also owes Operation Oswego County and the Oswego County IDA $850,000 for a loan the chocolate company received to purchase equipment.

"As for the IDA loan, it's still too early to predict failure for the company," Johnson said. "We must remain steadfast in believing that there is a realistic chance for New York Chocolate to make it through the tough incubation stage, and reach significant production that will capture a portion of the global market. In that regard, we will do what is necessary to protect our collateral interests, but we must remain cognizant that New York Chocolate does not want to leave this community, nor does it wish to forego the millions of dollars that it has already invested into the business thus far."

According to Johnson, the survival and success of New York Chocolate are essential to the Fulton community.

"In a time when manufacturing jobs are nationally becoming a thing of the past, there is the distinct possibility that our community can reverse that trend," said Johnson. "We see Huhtamaki continue to grow in size and staffing levels, Birds Eye Foods is strong, and Spear USA remains committed to success. This proves that our city and county can support growth in manufacturing, unlike most other areas in the country. We are ripe for growth, and with powerful teamwork from all levels of government, we help make that happen."