Kraft Heinz invests $100 million into New Ulm production facility
Staff photo by Kevin Sweeney
The new addition to the Kraft Plant in New Ulm is nearing completion. The expansion remodeled 35,000 square feet of the existing plant, and added another 23,000 square foot building. The expansion and the addition of new production equipment will make New Ulm the sole producer of Velveeta products in the U.S. later this summer. The expansion has created 50 new jobs that will be filled this summer, and preserved some 95 existing jobs at the New Ulm facility.
By Kevin Sweeney Journal Editor
NEW ULM — New Ulm will once again be the center of the Velveeta universe this year when Kraft Heinz completes the expansion of its New Ulm production plant. The 62-year-old plant has been undergoing a $100 million expansion this past year, and Kraft Heinz hopes to have the expansion completed and start up its new lines by the second quarter of 2017, according to Michael Mullen, senior vice president of Corporate and Government Affairs. In conjunction with the expansion, New Ulm is hiring 50
The expansion at the plant is aimed at making New Ulm the Velveeta production epicenter of the U.S.
The expansion came at a time when many in New Ulm were uncertain of the future of the plant, which was built in the 1950s and seemed to occupy a less favorable spot on Kraft’s priorities as late as 2012. Back then, Kraft Foods Group underwent a reorganization in 2012 when it was spun off from Kraft Foods, Inc. by its owner, Philip Morris. At that time Kraft began consolidating production in various plants, moving the Velveeta production line, which had been a mainstay of the New Ulm production plant, to Springfield, Ill. Local jobs went along with it. The local plant retained production of Kraft Handi Snacks, and was given production of MilkBite milk and granola bar that didn’t catch on in the marketplace. But the announcement of the expansion last year was a clear indication that Kraft is in New Ulm to stay, and plans to stay for a long time. “We look forward to celebrating the completion of the expansion and the successful transition of Velveeta production in the latter part of the year,” Mullen said.
producing Velveeta loaf products,” said Mullen, “including 2 lb., 1 lb., half-pound and new Mini Blocks varieties, along with other flavors of Velveeta, which include Mexican, Queso and 2%. The plant also produces foodservice portions of Velveeta. New Ulm will become the sole producer of these Velveeta products in the United States later this summer.” In addition to Velveeta, the plant is the sole producer of Deli Deluxe processed cheese. The plant will no longer proIn addition to Velveeta, the New Ulm Kraft facility will produce Deli Deluxe line of cheeses. duce Handi Snacks following the expansion, though all emnew employees to its existing both past and present. We’re ployees in that area have been workforce of about 375. New very proud of New Ulm’s her- given the opportunity to stay positions will include many itage of dedicated and hard- with the plant and work on the new Velveeta lines. skilled roles such as operators working people. The new expansion can be and electricians. All new roles will be filled by the second seen from South Bridge Street. Mullen said Kraft Heinz is requarter. “As announced in May of modeling 35,000 square feet of 2016, the addition of new jobs, space in the current Kraft facilproduction lines and economic ity. The new building adds andevelopment opportunities is a other 23,000 square feet. In addition to the building exwin for the city of New Ulm and for Kraft Heinz as we strive pansion, Kraft has invested in to accelerate our Company’s fu- new equipment to produce the ture growth in the marketplace.” new production lines, which said Mullen. “Our New Ulm fa- feature Velveeta, and more Velveeta MiniBlocks is one of the versions of Velveeta that will be produced cility has provided jobs and Velveeta. at the New Ulm Kraft facility with the completion of the expansion project later All remodeling and new this year. growth opportunities for generations of local workers. We equipment is associated with want to thank city and state officials for their partnership in the recently announced expansion of this facility. The success of the expansion project is a tribute to the employees of this plant and to the entire New Ulm workforce,