The Hershey Chocolate Factory in Smiths Falls, Ont., could soon have new owners, the town's mayor said Tuesday.

Dennis Staples said the company, Aquablue International, a Canadian water-bottling company, is finalizing its purchase of the factory that ceased operations last year in the town, which is about 80 kilometres southwest of Ottawa.

The Hershey Company announced in February 2007 that the Smiths Falls plant would begin to phase out its production and in 2008, the factory went dormant, putting 600 people out of work.

"This is one piece of the puzzle that's going to be announced," Staples said of the new purchase.

The town hopes that new ownership will translate to new jobs in the community.

Staples said he didn't know what Aquablue International planned to do with the old Hershey Factory but job creation would likely be part of the new ownership.

Smiths Falls, he said, is working to recover from the recent closures of the Hershey Factory, the Rideau Regional Centre and Stanley Tools.

Staples said eight to 10 companies had expressed interest in the factory, but Aquablue International was the closest to signing the deal.

"We've been working hard and following up on all leads," said Staples.

The new purchase, he said, is "taking us in a direction that we want to go with respect to recovery of the jobs we've lost and the creation of new jobs here in our community."