The business community in Smiths Falls, Ont. is warning that the planned closure of the Hershey chocolate factory will have a big impact on the local economy.
The U.S.-based company announced last week that it will phase out production of its products at the plant through 2007 and into 2008. The company has announced plans to eventually move production to Mexico, eliminating about 500 good-paying jobs in the eastern Ontario city of 9,000 people.
Closure of the plant, which has operated for 44 years, would be devastating for Smiths Falls. Local dairy farmers and truckers do business with Hershey. The factory store is a major tourist draw.
"I think it will have a trickle-down effect," Valerie Hudson, coordinator of the community's Downtown Business Association said Sunday.
"Town Council has said that it will only be a $150,000 loss in taxes, but the losses all across the community will be immense."
Hershey's decision is part of a three-year cost-saving program. When the plant is closed, Hudson believes that many people will be forced to leave Smiths Falls.
"They'll have to if they wish to eat."
She added that Hershey has been an "enormous part" of the community over the years that their decision to relocate in Mexico "is quite shaking."
Community rally
Hundreds of people rallied outside the factory on Saturday, imploring the company to keep the plant operating.
"I want to convey to you that we are committed as a union to do everything that we can to convince the corporation to change their mind and reverse this stupid decision," Harry Gadman of the Canadian Auto Workers told the crowd.
A human toll is also expected to accompany the closure.
Dianna Robertson told CTV Ottawa that she's worked at the factory for 36 years.
"I met my husband here. Both my daughters worked here as they worked their way through school," she said.
"It's heartbreaking. It's like we're at a funeral. It's like somebody died," added Hershey employee Kathy Fox.
"If this closes, I'm not sure where I'm going to go. I'll probably have to go out of town," said employee Marion Ainsworth.
Ontario manufacturing suffering
A similar story has been playing out in other eastern Ontario cities.
In the past year, Domtar closed a paper mill in Cornwall, throwing more than 1,000 out of work.
Nestle closed a factory in Chesterville, costing 300 jobs. Another 200 people in Arnprior will lose their jobs when Pfizer closes a plant.
The auto industry in southwestern Ontario and the forest industry in the northern part of the province are also experiencing tough times.
