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Nestle scales back plans for McCloud bottled water plant

Posted by: Aqua Blog Maven on May 13, 2008 at 5:58 am

From Business Week & the Associated Press:

Nestle SA said Monday it is significantly scaling back plans in Northern California to build what would have been the country’s largest water bottling plant. The announcement by Nestle Waters North America comes after years of opposition by environmentalists and a group of residents in the rural town of McCloud.

With soaring fuel and transportation costs, building a 1 million square foot facility at the base of Mount Shasta no longer makes economic sense, said David Palais, Nestle’s Northern California natural resource manager. The company also has built a plant in Denver and expanded other facilities in the West. Palais told The Associated Press that those expansions make a large plant in California less necessary.

Nestle signed a contract in 2003 with the McCloud Community Services District to pump up to 521 million gallons of water a year. In exchange, the Swiss food and drink company agreed to pay $250,000 to $350,000 a year to the town of McCloud, about 200 miles north of Sacramento.

Palais said the company now will seek permission to pump a fraction of that water and build a much smaller plant of about 350,000 square feet.

Read the full text of this article from Business Week by clicking here.

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