Updated at 12:19 p.m., Friday, October 20, 2006
Frito-Lay to stop production in Hawaii; 108 laid off
BY RICK DAYSOG
Advertiser Staff Writer
Frito-Lay said, in a news release today, that the Aiea plant cannot be expanded, so it is switching production to larger facilities on the Mainland.
"While the consolidation is strategic for our business, we recognize the personal impact business decisions such as this one have. This is not an easy decision to make," said Al Carey, president and chief executive officer of Frito-Lay North America.
The company said the Aiea location will serve as a temporary distribution center. Frito-Lay said it will retain 123 workers that are employed by its warehouse and sales operations.
The Aiea plant produces potato chips, corn chips and other snacks under the company's Cheetos, Doritos, Fritos and Funyuns brands. The company, a division of PepsiCo, said those products will be made at its plants on the Mainland and will be shipped to Hawaii.
In addition to the local plant, Frito-Lay said it will also close its 41-year-old Lubbock, Texas, location, which is one of its oldest manufacturing facilities.
The company said it will offer severance for employees affected and some workers will be able to qualify for early retirement benefits.
Reach Rick Daysog at 525-8064 or rdaysog@honoluluadvertiser.com