OWINGS MILLS, MD. — Sweetheart Cup Co. will increase its distribution capability in a May relocation to a facility being constructed in Ontario, Calif.
Sweetheart plans to lease 370,000 square feet in a 540,000-square-foot building, to store finished goods and distribute them to West Coast locations. The 16-year lease is valued at more than $20 million, according to a local real estate official.
Sweetheart now leases 249,000 square feet in another Ontario building.
``Our lease expires at the time the new facility becomes available,'' Dan Carson, vice president and general counsel, said in a telephone interview from Sweetheart's Owings Mills headquarters. The move is ``an issue of expansion.''
Sweetheart is a major producer of plastic and paper disposable food-service and food-packaging products, with 15 manufacturing and six distribution sites in the United States and Canada. McDonald's Corp. accounted for 13.6 percent of parent company Sweetheart Holdings Inc.'s fiscal 1996 sales of $903.3 million.
``Sweetheart is not precluding the thought that [the Ontario building] could become a manufacturing facility,'' said Bill Heim, an industrial broker with Lee & Associates Commercial Real Estate.
The balance of the building remains available for lease, and the site is accessible to a rail spur for raw material deliveries.