In an expansive boost to the brand and its production levels, Kraft Heinz has announced that the company will be investing more than $100 million into its plant in New Ulm, MN.
“This expansion is a tribute to the strong work ethic and dedication of the New Ulm workforce, both past and present,” said Matt Hippe, New Ulm Plant Manager, according to AreaDevelopment.com.
The plant expansion will add 50 jobs and four production lines to the plant, which already hosts almost 400 employees. The average starting wage of the new positions will be $22.16, according to both the company and the state. Kraft Heinz expects the new lines to be up and running by the end of next year.
The plant already processes cheese for Kraft Deli Deluxe slices and other products, such as Handi Snacks, but this new investment heralds the return of retail production for the most noted processed Kraft cheese, Velveeta, which was moved to an Illinois-based plant in 2012.
According to a statement by the StarTribune, Coordinator for the New Ulm Economic Development Corporation, Brian Tohal, said that this expansion would also save 90 Kraft jobs. These jobs were slated for closure due to a recent contract loss at the company, but will remain as the plant ups its production.
The Minnesota Department of Employment and Economic Development (DEED) will support the project with a $450,000 loan from the Minnesota Investment Fund. The loan will be forgiven if the company meets its investment and hiring goals for the New Ulm plant.
The StarTribune also reported that the city of New Ulm will contribute to its own $113,000 investment to the expansion with $20,000 in cash, and a 3.8-acre parcel of land worth $93,000.
“The Kraft Heinz food manufacturing plant has been an institution in New Ulm for more than 60 years,” said DEED Commissioner Shawntera Hardy according to a statement by Area Development.com. “We’re pleased that the company is making a major jobs and facilities investment that will improve their operation for years to come in the city.”
As we previously reported, Kraft Heinz announced last year that it would be closing seven plants, and cut its workforce by six percent in about 2,600 jobs in North America. This New Ulm expansion signals that while the company won’t hold back from aggressive strategies, it still remains dedicated to growth and upping production for the retail sector.
Stay with DeliMarket News as we continue to report on Kraft Heinz and its production-based decisions in the industry.
