Industry News | June 2, 2007

Sheetz, Inc. Launches Sheetz Bros. Kitchen

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The Sheetz Corporation and the Altoona-Blair County Development Corporation will break ground today for the new Sheetz Bros. Kitchen. The facility will encompass 140,000 square feet and is being classified as a production operation where innovative food products including "made-to-go" sandwiches, wraps, salads, parfaits and bakery products will be processed and delivered on a daily basis to all of the company's 334 existing stores. The facility will also meet the demands of a growing customer base and future stores anticipated in the Mid-Atlantic region.

The Sheetz Bros. Kitchen project will be located in the Walter Business Park on an existing 60 acre site with an additional 40 acres earmarked to accommodate the new facility and possible future projects. The total estimated cost of the production facility, including land is estimated at $36 million. In addition, it is estimated that approximately $10.5 million in production equipment will be needed to support the facility operations.

Sheetz customers expect innovative food products at the highest quality, and this project will provide Sheetz with the ability to continue to meet the demands and needs of its customers. In addition to the new production facility, the project will also include a 28,000 square foot expansion to the existing distribution center. Sheetz Corporation has selected the Dennis Group to provide engineering and construction management services for the project.

"I am excited to finally see this project come to fruition. It's been in the planning and development stages for a long time and we're extremely proud to be working again with the ABCD Corporation to build this facility here in Blair County," said Stanton Sheetz - President and CEO of Sheetz Corporation.

"Sheetz Bros. Kitchen is something we've wanted to start for a long time. It will help us strengthen our distribution process in serving our stores with the products our customers want."

"This project is not only going to be good for Sheetz, but good for the Altoona Blair County Community because it will provide new job opportunities for people in this region. We started this business in Altoona and have always been proud of that fact. We're happy to continue growing and expanding in our hometown community."

"Customers in our hometown have supported us for years and we truly appreciate that. We're glad that we are able to work together with ABCD Corp. to encourage and promote economic growth in this region."

"ABCD Corporation and the entire community are grateful to the Sheetz brothers, Sheetz family members and the entire Sheetz corporate team for their commitment to increase investment and job creation in Blair County Area and the I-99 Corridor. They have taken their vision and dreams and turned them into reality for the benefit of the company, the community, the region, and the Commonwealth of Pennsylvania," said Martin J. Marasco - President and CEO of ABCD Corporation.

New jobs to be created from the new operation are estimated at 435 over the next five years. This involves 300 production employees, approximately 85 drivers to run a fleet of 50 small delivery vehicles, and another 50 employees for administrative and supporting rolls. The anticipated payroll impact is estimated at $12.1 million with a benefit package projected at $6.3 million.

In order to advance additional development at the Walter Business Park, ABCD Corporation was responsible for completing Phase II Transportation Improvements at the Park -- which is now known as "Sheetz Way." These access improvements were made possible by an investment of more than $3.6 million with $2.2 million provided by the Federal Highway Administration, $1.1 million from the Commonwealth of PA's Department of Community & Economic Development, $300,000 from the Appalachian Regional Commission and $80,000 from the Blair County Commissioners through a CDBG grant.