South Coast Baking, a US-based frozen bakery products maker, is set to open its second production facility in Springdale, Arkansas.
The plant will produce frozen cookie dough for food retailers in the country.
Initially, the company plans to employ 80 workers with a ramp up of 40 additional employees, reaching 150 employees during its third year of operation in Springdale.
California-based South Coast Baking distributes its products to more than 38 countries, the exclusive frozen cookie dough producer for Mrs. Fields and is also a major supplier for Sam's Club and St. Louis-based Panera Bread.
The company is investing $8.7m at the 104,000ft2 plant in Springdale, while utilizing green technology elements as much as possible in the project. The manufacturing and warehouse facility will allow the company to significantly reduce its existing transportation costs.
South Coast Baking CEO Kent Hayden said that after carefully considering several regions to expand the California facility, Springdale proved to be a perfect fit for the company.
"The city provides us with an opportunity to establish our roots in an economically viable and business-friendly climate," Hayden added.
"Ultimately our increased production capacity along with geographical freight efficiencies will allow us to better serve our customers."
The company expects the project to commence in November, with operations due in July 2014.