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May 21, 2016

Kraft Heinz Expands Minnesota Cheese Plant

 |  By: Jim Dickrell

Food giant Kraft Heinz is expanding its cheese production plant in New Ulm, Minn., adding four Velveeta processing lines.

The $100 million plant expansion should be completed by the end of 2017 and add 50 jobs to its current plant at the site that employs 400. The new jobs will pay an average of $22.16/hour.

In 2012 (before its merger with H.S. Heinz), Kraft had down-scaled the New Ulm plant, moving some Velveeta operations to an Illinois plant and cutting the workforce from 550 to 400. The new expansion will produce some branded Velveeta products such as Kraft Deli Delight slices and Handi Snacks, according to a report in the Minneapolis Star Tribune.

The expansion is being supported by a $450,000 forgivable loan from the Minnesota Investment Fund. That loan will be forgiven if hiring goals are met. The City of New Ulm will also kick in $113,000 in land and infrastructure to support the expansion.

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