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MN: Kraft Heinz to Invest $100M+, Add 50 Jobs in New Ulm

24 May, 2016


Global food and beverage company Kraft Heinz will invest more than $100 million and add 50 jobs in an expansion of its production facilities in the southern Minnesota city of New Ulm. 

The company, co-headquartered in Pittsburgh and Chicago, plans to expand an existing plant in New Ulm and add four new production lines by the end of 2017. The new positions will pay an average starting wage of $22.16 per hour and offer industry-leading benefits. 

The Minnesota Department of Employment and Economic Development (DEED) is supporting the project with a $450,000 forgivable loan from the Minnesota Investment Fund. The loan will be forgiven if the company meets hiring and investment goals. 

“The Minnesota Investment Fund helps generate well-paying jobs all across our state. About 60 percent of the program’s funding in the past year has supported business expansions in Greater Minnesota,” said Lt. Governor Tina Smith. “I thank Kraft Heinz for their continued partnership and for choosing to expand their operations in New Ulm.” 

“The Kraft Heinz food manufacturing plant has been an institution in New Ulm for more than 60 years,” said DEED Commissioner Shawntera Hardy. “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 Kraft Heinz Company (KHC) formed when Kraft Foods and H.J. Heinz merged last year, creating the fifth-largest food and beverage company in the world. The company has annual sales of $27.4 billion and owns such iconic brands as Jell-O, Kool-Aid, Velveeta, Ore-Ida, Oscar Mayer and Heinz Ketchup. 

The company’s New Ulm food manufacturing plant has been operating since 1955. The facility currently employs nearly 400 people, making it the city’s third-largest employer. 

“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. 

“The city of New Ulm would like to thank Kraft Heinz for their significant investment in our community,” said New Ulm Mayor Bob Beussman. “It is my hope that our community will continue to provide the environment, employees and goodwill that will allow Kraft Heinz to achieve future success in New Ulm. We look forward to a strong working relationship for many years to come.” 

The Minnesota Investment Fund awards loans that businesses can use for improving their operations and hiring additional workers. Program funds are disbursed to local governments and then provided as loans to businesses. Last year, the program awarded $11.2 million in loans to 21 businesses. Those loans resulted in more than 1,700 jobs and attracted $1.4 billion in private funding. 

More details about the program are here. 

DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at the DEED website (http://mn.gov/deed) or go to our Twitter account (http://twitter.com/mndeed).

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