NECCO Confectionery Manufacturing Plant, Revere, Massachusetts, USA

The New England Confectionery Company (NECCO), owned by UIS (United Industrial Syndicate), completed the construction of its $100m, 816,000ft² headquarters and production facility in the final quarter of 2003. The new facility in Revere, Massachusetts, consolidates NECCO's manufacturing operations – previously carried out at three sites across Massachusetts – under one roof.

NECCO selected The Austin Company to provide design, engineering and construction services for the facility. The project called for retrofitting a 572,000ft² warehousing and distribution facility into an 816,000ft² candy-manufacturing centre.

The Austin Company managed the project out of its office in Kansas City, Missouri. Construction of the plant started in January 2002. NECCO was able to start production on the new plant's first line, Candy Buttons, in March 2003, with new lines coming online throughout 2003. Final lines came online in November 2003.

COST SAVING

The move was undertaken to save costs by the rationalisation of three manufacturing sites into one. The sale of the other two sites raised over $111m which was used to convert the Revere site to a multi-mode manufacturing site.

The move also helped by saving $500,000 merely by eliminating the need for an employee shuttle service between the other facilities. Consolidation has also allowed the firm to reduce costs associated with the duplication of ancillary services.

NECCO will not just be benefiting from the increased efficiencies of having all its operations at one site; the new factory boasts its own combined heat and power (CHP) plant, which will save $750,000 a year, and a wealth of cutting-edge processing equipment. The company also saved $30m in capital gains tax by a tax transfer arrangement with DSF Real Estate Investors LLC who sold NECCO's Cambridge building to Novartis AG for $76.75m.

RANGE OF PRODUCTS

NECCO produces 540 separate products, spread over about 15 product families. Some brands are produced on a seasonal basis while others are sold all year around. Each year this range brings in around $100m in sales. On the 586,000ft² production floor of the new facility, NECCO has installed the equipment to meet this demand.

NECCO's new plant was installed with an advanced building control system that allows all of the building's systems to be monitored and adjusted from a central panel. Chilled water, hot water and localised temperature loops can all be monitored and adjusted instantly.

This level of control throughout the plant means NECCO can enjoy improved efficiency in its cooling tunnels and better tempering. Within months of beginning production the firm was able to increase production of chocolate chips by 15%.

In November 2006 it was reported that UIS was looking into selling NECCO. The sales figures for 2005 showed $80m, down by around 20% compared to previous years. JP Morgan was retained by UIS to advise on the sale but it remains to be seen what the outcome will be.

AMP ROSE'S UPGRADE OF MARY JANE PRODUCTION LINE

NECCO's Mary Jane molasses and peanut butter candies are produced on a line of 20 Hamac Hansella batch rollers and wrapping machines. Production on this line began in April 2003. As well as the transferred equipment, the plant was upgraded with an additional line from AMP Rose. The new equipment supplied by AMP Rose allowed NECCO to increase production on the line to 8-10 million lb annually

AMP Rose also supplied a complete feeding and wrapping line to produce the Mary Jane candies at more than 900 pieces a minute. This line consists of a specially equipped F44 centre filler to continuously pump the peanut paste into the centre of the taffy batch contained within a BR42 batch roller.

The filled taffy rope from the BR42 passes through a VRS66 Rope Sizing Unit on its way to a Super 42HSF cut-wrap machine where it is finally cut to size and fold-wrapped, with the waxed paper wrapper being heat sealed and then cooled, prior to being discharged onto a conveyor.

AMP's F44 centre filler is an improved version of its successful F42. The new filler is driven by an in-line Tasc unit and fillings are stored in an electronically heated 50l hopper. Drive speed and storage hopper temperature can be controlled from the unit's central panel. Filling is pumped through the unit using a stainless steel rotor, which provides a constant non-pulsating flow.

The Super 42HSF is one of the fastest cut and fold wrappers in the world, offering speeds of up to 1,000 pieces/minute. Three pairs of vertical intermittent rollers size the candy rope as it moves to the wrapper. As the rope enters the machine it is detected by a sensor, which automatically activates the wrapper feed system. The candy is then cut using water-cooled guillotine type knives, which ensure a minimum amount of chipping.

CHAINLESS MOULDING LINE AND MOULDING TUNNELS

NECCO also added to its production facilities with a chainless moulding line and 15 new moulding tunnels from Carle & Montanari. The chainless moulding line (which replaces two Praeletta lines) will allow NECCO to make Sky Bar miniatures. The line's fast shell technology will increase the company's ability to offer a wide range of chocolate candies.

The Chainless Cavemil moulding plants supplied by Carle & Montanari allow for production of solid or filled candies. Carle & Montanari had designed the moulding plant with an eye to fundamental principles of simplicity, reliability and ease of cleaning. The finished product offers improved ease of manufacture, maintenance and operation.

The absence of conveyor chains eliminates the need for chain guides, supports, cross transmission, pairing shafts or gears. This reduces the number of lubrication and mechanical maintenance points needed on the machine.

Moulds are carried through the plant using a longitudinal worm screw and specially shaped mould boxes. The carriage system ensures that the moulds remain firmly in place during acceleration and deceleration. The worm screw is driven by a single drive axis, ensuring simple transmission and control of the servomotor-generated movement.

The simplicity of the line's design and the reduced number of parts required offers considerable reductions in time required for installation and cleaning. As the entire line is constructed from extruded anodised aluminium, stainless steel and synthetics, there are no parts that are susceptible to rust formation. This makes it possible to easily and thoroughly wash and sanitise the line (Clean-in-Place).

POWER PLANT

NECCO believes new equipment such as this could boost the firm's production capability by more than 15%. However, this is not the only advantage the new plant will offer. As part of the move to Revere, NECCO entered into a 20-year agreement with Trigen-Boston Energy Corporation that would see the power company develop, install, own, operate and maintain a 6MW CHP plant at the site.

The new CHP facility will include two gas engines, a heat recovery system, selective catalytic reduction system and an oxidation catalyst for emissions control. Trigen expects the plant to achieve an annual efficiency of 68%, as compared to a US national average efficiency of 33% for conventional generation. These improved efficiencies are expected to save NECCO $750,000 a year, or $15m over the projected life of the contract.

The design of the plant is also expected to offer substantial environmental benefits. By using the new CHP plants, NECCO should be able to reduce emissions of carbon dioxide per ton of candy produced by 32%, nitrogen oxide emissions by 39% and sulphur dioxide emissions by over 97%.