Nestle said move "right decision for our business"

Nestle said move "right decision for our business"

Nestle's US arm has decided to move the production of Hot Pockets sandwiches, a move that will affect around 360 staff.

Ouput will switch from Nestle's facility in Chatsworth in California to another company site in Mt Sterling in Kentucky.

Nestle said the move will see its plant in Mt Sterling take on 150 new workers as the facility will run 24 hours a day, seven days a week.

"Unlike other manufacturing facilities we operate in California, the Chatsworth facility presents some challenges to our business needs," Martial Genthon, Nestle USA's chief technical officer, said. "While the decision to stop manufacturing Hot Pockets at our California facility is a tough one because it affects 360 of our Nestle employees, it is the right decision for our business. Consolidating to one location will allow us to further improve our level of performance. We anticipate better facility utilisation, optimised production schedules and streamlined delivery - both from our vendors and to our customers."

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Nestlé USA today informed employees that it will no longer manufacture the popular HOT POCKETS® brand sandwiches at a Chatsworth, CA facility that has made them since 1988. Approximately 360 employees will be impacted by this decision. Nestlé will help these employees transition, either to positions in other Nestlé facilities where openings are available, or to eventual employment outside of Nestlé.

HOT POCKETS production will be consolidated at another Nestlé facility in Kentucky, which opened in1993 to make the popular sandwiches. The Mt. Sterling, KY facility doubled in size in 1996, and its location offers opportunity for further expansion, if needed.  Nestlé will invest $13 million in the Mt. Sterling facility, and will hire 150 new employees there as the operation converts to a 24 hours/7 days per week schedule. Currently, Nestlé is the largest employer in Mt. Sterling.

Nestlé USA’s Chief Technical Officer Martial Genthon said the decision to consolidate production to one location came after exhaustive analysis.“Unlike other manufacturing facilities we operate in California, the Chatsworth facility presents some challenges to our business needs. While the decision to stop manufacturing HOT POCKETS at our California facility is a tough one because it affects 360 of our Nestlé employees, it is the right decision for our business. Consolidating to one location will allow us to further improve our level of performance. We anticipate better facility utilization, optimized production schedules and streamlined delivery -- both from our vendors and to our customers.  As we expand employment in Kentucky, we appreciate the continuing assistance from the Commonwealth of Kentucky and Governor Steve Beshear, and from leadership in Montgomery County and its county seat, the city of Mt. Sterling,” said Mr. Genthon. 

Nestlé acquired the HOT POCKETS® and LEAN POCKETS® brands in 2002, and moved brand management  from Colorado to Solon, Ohio in 2012. Last year, Nestlé highlighted the improvements it has made to the recipes with such additions as Angus beef, Hickory ham, white meat chicken, signature pepperoni, real cheese and new seasoned crusts.
Nestlé USA is part of Nestlé S.A. in Vevey, Switzerland — the world’s largest food company with a commitment to Nutrition, Health & Wellness. For product news and information, visit Nestleusa.com or Facebook.com/NestleUSA.

Original source: Nestle USA