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Deal reached to keep Kraft Heinz dairy plant open in Steuben County

A deal has been reached  to keep a dairy plant operating in Steuben County.

It is the plant owned by Kraft Heinz in Campbell.  That plant has been in danger of closing for some months now, and in fact layoff notices went out to 330 employees there earlier this year indicating the workers could lose their jobs.

Now comes word from Governor Andrew Cuomo and Senator Charles  Schumer that Kraft Heinz will sell the plant to Upstate Niagara, a dairy farmer cooperative based in Buffalo.

The deal guarantees that at least 125 jobs will remain in Steuben County with anticipated growth to 150 within a year. A spokesman for Kraft Heinz tells us that 180 other workers will face potential layoffs since Kraft is transferring the manufacturing of its string cheese to a plant in northern New York.  Kraft Heinz is adding 130 jobs in Lowville, NY.

Still, James Johnson, the executive director of the Steuben County Industrial Development Agency, says the positive here is that this plant will remain open.

“The alternative would have been the complete closure of the facility and once a facility like that closes reopening it and finding somebody who’s willing to put the investment into it to re-establish operation is extremely difficult and you’re provided with an even worse situation.”

Johnson says keeping the plant open benefits the area in another way. It will provide a place for 300 to 400 area dairy farmers to bring their milk.

Upstate Niagara is expected to invest $10 million in the Steuben County plant.  Empire State Development has offered a grant of up to $5 million to help with the transition.  And Kraft Heinz has pledged an ongoing  investment of $3 to $5 million to improve and maintain the Campbell facility.

The plant will focus on making mozzarella and ricotta cheese.  It’s expected some of those products will be sold to Kraft Heinz, as well as other vendors.

Randy Gorbman is WXXI's director of news and public affairs. Randy manages the day-to-day operations of WXXI News on radio, television, and online.