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Kraft Heinz to invest over $100m to expand production facility in Minnesota

FBR Staff Writer Published 24 May 2016

US-based food company Kraft Heinz is investing over$100m in the expansion of its production facility in New Ulm, Minnesota.

The company is planning add four new production lines at the facility by the end of 2017. Currently, the facility, which has been operational since 1955, has a headcount of around 400 people.

The project is supported by the Minnesota Department of Employment and Economic Development (DEED) though a $450,000 forgivable loan from its investment fund.

The loan will be waived off if the company meets employment and investment objectives, reported areadevelopment.com.

Minnesota Lt. Governor Tina Smith was quoted by the publication as saying: "The Minnesota Investment Fund helps generate well-paying jobs all across our state. About 60% of the program's funding in the past year has supported business expansions in Greater Minnesota."

DEED Commissioner Shawntera Hardy said: "The Kraft Heinz food manufacturing plant has been an institution in New Ulm for more than 60 years. 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."

The Minnesota Investment Fund grants loans to businesses to enhance their operations and to hire more people. The loans will be awarded by the local governments after receiving funds under the program.

In 2015, the fund provided $11.2m in loans to 21 businesses. These loans are said to have created over 1,700 jobs and helped in securing $1.4bn in private funding, reported vendingmarketwatch.com.

Kraft Heinz was formed last year with the merger of Kraft Foods and H.J. Heinz and owns brands such as Jell-O, Kool-Aid, Oscar Mayer and Heinz Ketchup.