Hershey to shut down Smiths Falls, Ont. plant

Warnings that a chocolate factory in Smiths Falls, Ont. is about to close appear to be true.

The Hershey Co. plans to close the plant it has operated in the community for 44 years, putting more than 500 people out of work. Employees heard the news almost a week after the company indicated there was a "very high probability" of the closure.

Company spokesperson Kirk Saville said the shutdown will occur later this year. He added that the decision was "extremely difficult." A specific date was not offered by the company.

Employees were reportedly informed of the decision Thursday morning by management.

News that the largest employer in the community of 9,000 will close its doors brought swift reaction. The Canadian Auto Workers union, which represents the plant workers, announced a community rally in support of the plant.

A short statement released by CAW Local 462 said that politicians, town residents and local businesses "are working together in an effort to convince Hershey to change its decision."

The rally is scheduled for Saturday at 10 a.m.

Hershey says the decision to shut operations in Smiths Falls is due to a "supply chain realignment."

In November of last year Hershey shut the plant down and voluntarily recalled products over fears of salmonella contamination. Employees were sent home while the source of the contamination was investigated.

Hershey gradually brought back about 200 employees while the plant was sanitized, but the rest remained off the job throughout the closure, which lasted into December.

The salmonella was traced to a supply of soy lecithin, an emulsifying agent used in many of Hershey's products.

With files from The Canadian Press