HOUSTON, Aug. 7, 2006 (PRIMEZONE) -- SYSCO Corporation (NYSE:SYY), North America's largest foodservice marketer and distributor, today announced plans to construct a broadline foodservice fold-out facility in Longview, Texas. SYSCO has tentatively selected a site on State Highway 149 (locally known as Estes Parkway), south of Interstate 20, which is located adjacent to the City of Longview, in Gregg County, Texas. Due diligence is currently underway, including geotechnical and environmental studies.
The new company is expected to be operational in the first quarter of calendar year 2008 and will serve restaurants, hospitals, schools, colleges, retirement homes, hotels and other foodservice operations in east Texas and portions of Arkansas and Louisiana. The complex will include approximately 290,000-square-feet of refrigerated, frozen and dry warehouse space, as well as administrative offices.
Richard J. Schnieders, SYSCO's chairman, chief executive officer and president, said, "The East Texas market is currently serviced by four of our broadline companies and presents a tremendous opportunity for growth. Establishing a local presence in that region will provide market penetration and expense reduction opportunities. We are eager to join the Longview community and be a positive presence in the region."
SYSCO's fold-out strategy involves building new facilities in an area with an established sales base that has been served by distant SYSCO companies. The Longview operation is the eighteenth broadline fold-out SYSCO has announced since unveiling the strategy in 1995.
Instrumental in selecting this location were Gregg County Judge Bill Stoudt, City of Longview Mayor Jay Dean, and the office of Texas Governor Rick Perry. The Longview Economic Development Corporation (LEDCO) coordinated the entire project at the local level.
"We are delighted that SYSCO has chosen Longview and Gregg County for their new operation," said Judge Stoudt. "This will mean additional payroll and benefits for our citizens and our community."
Mayor Dean, during a special meeting of the Longview City Council to consider this project, said, "This project will add more than 200 very good jobs over the next two years and will also benefit the Longview Independent School District with additional property tax receipts. SYSCO is well known and highly respected in the foodservice industry. We certainly welcome them to our community and know that they will be an outstanding corporate citizen."
LEDCO president Les Mendicello commented during a special meeting of his board of directors that SYSCO looked at other communities in Texas and Louisiana and selected Longview due to its central location to customers, the outstanding site location, available labor force, and the strong support of LEDCO and its staff.
SYSCO is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. For calendar year 2005 the company generated $31.4 billion in sales. For more information about SYSCO visit the company's Internet home page at www.sysco.com.
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Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They include statements regarding industry growth, employment growth and the location of any 'fold-out'. These statements involve risks and uncertainties and are based on current expectations and management's estimates; actual results may differ materially. Those risks and uncertainties that could impact these statements include the risks relating to the foodservice distribution industry's relatively low profit margins and sensitivity to economic conditions, SYSCO's leverage and debt risks, the risk of exposure to product liability claims, the risk of interruption of supplies due to lack of long-term contracts, work stoppages or otherwise, the inability to find attractive 'fold-out' locations, construction timetables, and other risk factors detailed in SYSCO's Form 10-K for the fiscal year ended July 3, 2004 filed with the Securities and Exchange Commission.