By Karen Blackledge
NORTHUMBERLAND -- A Northumberland company, which had plans to expand to a new location in the area, has expanded its operation to another state and could be closing in Northumberland.
A source close to FoodSwing Inc., of 50 Oak Road, reported Sunday night the company wanted to build a new plant near Montandon but negotiations broke down because of the amount of water required and water that would be discharged by the operation.
The company had planned to hire 150 employees at the new location on what is known as the Tanner tract, which is owned by the Milton Area Industrial Development Authority. The site is along Route 147 and north of Route 45. It is between the Central Susquehanna Intermediate Unit building and Route 147.
FoodSwing has installed equipment in the former Icelandic USA plant in Cambridge, Md., which has the volume of water it needs and the required permits already in place, a source reported.
Cherie Boyer, secretary of the West Chillisquaque Township supervisors, said Sunday night negotiations occurred last year with Pennsylvania American Water Co. and the Milton Regional Sewer Authority for the type of operation FoodSwing needed. A higher pressure water line and a larger line to the sewer plant would have been required.
The supervisors would have needed a letter stating the sewage plant could handle the flows from the company before they could have approved the project.
FoodSwing bought the Icelandic plant Dec. 31 for an undisclosed price. At that time, an official at Foodswing in Northumberland said the purchase would have no effect on the Northumberland operation. The Icelandic plant, which employed 422, closed in 2007.
The Northumberland plant manufactures and packages private-label foods for a number of retailers, including Weis Markets, Trader Joe's Whole Foods and Safeway.
Company President and CEO Roger Hoffman did not return a phone call Sunday night.
FoodSwing bought the former Land O Lakes/AFP Plant in Northumberland in January 2004 after leasing it for five years. The Northumberland location employs more than 60, according to its Web site.
FoodSwing was founded in New York City in 1999. The company was reincorporated in Delaware, and company operations, including the headquarters, moved from New York to Pennsylvania.
n E-mail comments to kblackledge@dailyitem.com.
