Gov. Walz announces $200 Million manufacturing expansion in Duluth

(ABC 6 News) – Minnesota Governor Tim Walz today announced that the manufacturer Sofidel will make 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 workforce size.

“Minnesota is a top state for innovation in manufacturing for a reason. Our investment in Sofidel is creating jobs and reinforcing Minnesota as a top 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, good-paying jobs, and building a stronger economy all across our state.”

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

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

Sofidel will expand their existing facility into an integrated, state-of-the-art production plant where raw materials are processed, manufactured, and packaged into finished goods such as paper towels, bath tissues, and napkins. The company will construct an automated warehouse for product storage and distribution. Construction will take place in phases beginning in late 2024 and continuing through late 2026. The completed project size will be nearly 600,000 square feet