Governor Walz Announces $200 Million Manufacturing Expansion in Duluth – ABC 6 News

(ABC 6 News) – Minnesota Governor Tim Walz today announced that manufacturer Sofidel will undertake a $200 million expansion in Duluth, supported by $5 million in business expansion funding from the state of Minnesota.

According to the governor’s office, the expansion will create at least 160 new jobs, tripling the company’s current headcount.

“Minnesota is a top state for manufacturing innovation for a reason. Our investment in Sofidel is creating jobs and reinforcing Minnesota as a premier place to live and work,” said Governor Walz. “In partnership with our Department of Employment and Economic Development, we are creating high-growth, high-demand, high-paying jobs and building a stronger economy across our state.”

Funding for the expansion will come from the Minnesota Department of Employment and Economic Development, or DEED, the Minnesota Job Creation Fund and Investment Fund. The Job Creation Fund provides financial incentives to new and expanding companies that meet certain job creation and capital investment targets. The Minnesota Investment Fund provides financing to help add new workers and maintain high-quality jobs – with a focus on industrial, manufacturing and technology-related industries.

“This is an incredible investment in Duluth and across the state – an investment that reinforces the company’s commitment to excellence in the papermaking industry and the economic vitality of northern Minnesota,” said DEED Commissioner Matt Varilek. “It is an important demonstration of a public/private partnership – and Sofidel’s presence and efforts will contribute not only to local and state economies, but also to the fabric of the community.”

Sofidel will expand its existing facilities into a state-of-the-art, integrated production plant where raw materials are processed, manufactured and packaged into finished products such as paper towels, bath tissues and napkins. The company will build an automated warehouse for storing and distributing products. Construction will occur in phases, beginning in late 2024 and continuing through the end of 2026. The size of the completed project will be nearly 600,000 square feet.