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KRAFT USA ANNOUNCES PLANS FOR CHEESE PRODUCTION AT FORMER LOUIS RICH FACILITY IN TULARE

 KRAFT USA ANNOUNCES PLANS FOR CHEESE PRODUCTION
 AT FORMER LOUIS RICH FACILITY IN TULARE
 GLENVIEW, Ill., Aug. 26 /PRNewswire/ -- Kraft USA, the nation's leading producer of retail cheese products, today announced its intentions to produce bulk natural cheese at the former Louis Rich facility in Tulare, Calif. Conversion of the 315,000-square-foot plant will result in the start-up of production in April 1994.
 The facility will be Kraft USA's second in Tulare, where the company also has a plant that produces a variety of processed cheese products.
 "Our plans to expand in Tulare make sense for a number of reasons," said Jim Kilts, president of Kraft USA. "Tulare is in the heart of California dairy country, where milk production has been growing. The plant site we will be occupying is state-of-the-art. And we know firsthand what a supportive community Tulare is and what an excellent work force it has."
 Production of bulk natural cheese, which is then shipped to other facilities for further processing into forms such as sliced or shredded cheese, is a highly automated operation. As a result, the plant is expected to employ slightly more than 100 people, compared to 1,400 when the facility was used to produce Louis Rich turkey products.
 "From a community point of view, however, the overall economic impact of the new cheese operation will virtually double that of the meat processing operation," Kilts said. "Annually the plant will inject $90 to $100 million into the local economy through wages, taxes, and the purchase of milk and other goods and services."
 Kraft USA expects to sign contracts soon with four milk producer cooperatives -- California Milk Producers Association, California Cooperative Creamery Association, Dairymen Cooperative Creamery Association, and Danish Creamery Association -- for the daily purchase of more than 2 million pounds of milk, Kilts said.
 Original construction of the plant began in 1987, with turkey processing starting in July 1989. A slow-down in the growth of the turkey market led to a decision last December to cease production in May of this year. Since then, Kraft General Foods, which owns both Kraft and Louis Rich, has been studying options for use of the plant.
 Kraft General Foods is the multinational food business of Philip Morris Companies Inc. (NYSE: MO).
 -0- 8/26/92
 /CONTACT: Michael Mudd of Kraft General Foods, 708-646-2868/
 (MO) CO: Kraft USA; Kraft General Foods ST: Illinois, California IN: FOD SU:


JB-JL -- LA013 -- 3467 08/26/92 12:33 EDT
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Date:Aug 26, 1992
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