MEDFORD, Ore. - Medford-based Harry and David says it will break ground on a $16 million expansion of its Hebron, Ohio, facility for candy, chocolate and packaging operations.

Spokesman Bill Ihle says the company can't meet the demand for its products and run its Medford kitchen 20 hours a day, leaving four hours for cleaning.

Company President Bill Williams says the expansion will cut transportation costs and increase production.

Much of Harry and David's marketing targets Eastern cities, and Williams said that last year the Ohio distribution center shipped one million more gift packages than the one in the home base city Medford.

The Hebron expansion, targeted for completion in fall of 2008, is expected to add about 160 jobs to the 225 there now.

Harry and David, which gained initial fame largely as a shipper of fruit packages, opened its Hebron distribution and call center in 1997.