General Mills has announced that it will invest $25m to expand its cereal production plant in Buffalo, New York, US.
Expected to be completed in May 2017, the expansion project will include purchase of new packaging equipment, production of two newly added products Honey Nut Chex and Corn Chex cereal products and upgraded ingredient systems.
For the Chex cereal production, General Mills will be installing a couple of new product lines. New York State is backing the plant expansion with a $500,000 grant through the Empire State Development.
New York Governor Andrew M. Cuomo said: "General Mills is a Buffalo institution that has milled on-site for more than a century.
"This administration is committed to protecting good paying jobs across the state and we are proud to support this great Western New York business.”
Following the recommendation of the Western New York Power Proceeds Allocation Board, the New York Power Authority has also announced a grant of $500,000 to the project.
Apart from that, New York Power Authority will also deliver 5,100 kilowatts of low-cost hydropower and 500 kilowatts of electricity to the plant through the ReChardge NY program.
Both the grants are aimed at retaining 417 full-time jobs at the Buffalo plant.
General Mills Buffalo plant manager Allen Brown said: "At the Buffalo plant, we believe we have the best employees, making the best cereal.”
Currently, the Buffalo plant manufactures cereal brands such as Lucky Charms and Cheerios with further plans to add Corn Chex and Honey Nut Chex to expand the portfolio.
In September, General Mills announced that it would shut down its Progresso soup manufacturing plant at Vineland by the first quarter of fiscal 2018. The closure was expected to impact around 370 employees.
