Kraft Foods will be expanding its Dover plant as it moves Kool-Aid production from Mexico. The decision will add jobs at the long-time Delaware employer.
The Council on Development Finance of the Delaware Economic Development Office approved a $465,000 request for packaging equipment at the plant that would be used in connection with the production of the popular drink.
The plant, which operated for many years under the General Foods name, produces a number of products.
Kraft plans to invest $10 million to expand its 1-million-square-foot manufacturing facility, Delaware Economic Development Office Director Alan Levin announced. The expansion will create 29 new, full-time jobs by March 31 of next year.
The state’s investment will support the acquisition of new manufacturing and packaging equipment to increase production of Kool-Aid, Production of the powdered family favorite will be relocated from a plant in Ecatepec, Mexico.
“Kraft’s decision to expand in Dover shows its strong support for the quality of our workforce in the state of Delaware,” said Levin. “We are proud to have one of the world’s largest and best known food and beverage companies among our employers in Kent County. We look forward to the company’s continued growth at this facility.”
Last year, Kraft announced plans to split into two publicly traded companies: Kraft Foods Group Inc. and Mondelez International Inc., a new company encompassing Kraft’s global snacks business. The transaction is expected to be completed before the end of 2012. The Dover facility will be part of the North American Grocery Company, which will retain the Kraft Foods name.
Located on 1250 W. North Street, the Dover facility first opened in 1964. The 117-acre site today employs approximately 535 employees, ranking Kraft as largest manufacturing firm in Kent County.
Kraft currently manufactures various food and beverage products such as Stove Top stuffing mix, Jell-O desserts, Dream Whip whipped topping mix, and Kool-Aid, Country Time, Crystal Light soft drink mixes. The planned expansion represents the second time in four years the company has added a product line at the site.
“It is important that we work closely with the businesses that already have a presence in Delaware to help them expand their facilities, which will provide more job opportunities for our citizens,” said city of Dover Mayor Carleton Carey. “Kraft Foods is a business that employs hundreds of people in Dover and the state, and makes a meaningful contribution to our community.”
The new jobs will be mostly machine operators and maintenance technicians for package processing lines. Hiring and training for the positions will begin by the end of the year.
The site’s future has always been a concern as the plant’s owners have undergone a number of restructurings and cost cutting efforts over the years. Delaware has also struggled to hold on to manufacturing jobs in a global economy.
The council on Development Finance also recommended approval of the following:
– SIMM Associates, Inc. – recommended a participation loan for $500,000 from the State Small Business Credit Initiative Loan Program in conjunction with Applied Bank. The applicant proposes to use the funds to refinance its existing debt to continue operations at its facility on Pencader Drive in Glasgow. SIMM is a debt collection firm.
– Bayard Pharmacy – Recommended a participation loan for $55,675 from the State Small Business Credit Initiative Loan Program in conjunction with Dover Federal Credit Union. Bayard proposes to use the funds to purchase inventory and for start-up expenses related to the opening of its pharmacy in Dover.
St. Francis Hospital – The board recommended a term modification to its existing $4 million Strategic Fund loan to allow St. Francis to develop the Program of All-Inclusive Care for the Elderly at the Wilmingon riverfront.
