Tastykake took over its new Navy Yard bakery yesterday. It's not scheduled to fully replace the old Hunting Park works until next June, but the lunchbox pie and packaging line is ready now, and the six other lines are nearly done, so the pie line, at least, "could be fully operational by December 1," which is "meaningfully ahead of schedule," writes analyst Mitchell Pinheiro of Janney Capital Markets in a report to clients today.
Pinheiro expects Tasty will be selling Navy Yard pies by Thanksgiving. NEW: Other products "will be commissioned on a line-by-line basis," on up until June, he told me..
Some Hunting Park workers will lose their jobs as Tasty moves to the modern Navy Yard plant, according to the report. Tastykake will eventually save "between $13 million and $15 million" a year, mostly from its payroll.
Chief executive Charles Pizzi built the $75 million plant with financing from Citizens Bank and several other banks, plus a $600,000 Pennsylvania Opportunity Grant, $10 million in Philadelphia Industrial Development Corp. low-interest loans, a $12 million PIDC secured-credit agreement, and $10 million in Pennsylvania state loans. It also enjoys state and local income tax abatements from a Keystone Opportunity Investment Zone.