The firm will install three high-speed filler packaging lines, additional packaging equipment and repurpose a mixer to provide raw materials and powder mix for the packaging lines.
Kraft Foods is also investing US$10m in the site to create 29 new jobs and move Kool-Aid production from Mexico to the US in 2013.
Local council help
The request for the $456,000 funding was granted by the Delaware Council on Development Finance at its meeting last week.
When asked why Kraft had applied for the grant from the local council, a Kraft Foods spokeswoman told FoodProductionDaily.com: “Governments make incentives such as this available specifically to attract investment and create jobs. This is a great example of that.”
She said: “This incentive helps our plant to expand production and reduce our overall costs at our Dover plant.
“That’s good for our business, which in turn, is positive for the area. We’ve been part of the Dover community since the 1960s and we’re proud to bring additional investment and jobs to the area.
“Kool-Aid production will continue at our Mexico plant into March 2013. We regularly look across our North American manufacturing network and move production as needed.”
The equipment will be installed in the fourth quarter of this year with the facility expected to be fully operational in March next year.
Significant investment
The spokeswoman added: “We plan to make a significant investmentin additional packaging equipment for powdered soft drinks made at our Dover plant.
“We also plan to repurpose a mixer to provide raw materials and powder mix for the new packaging lines.
“To do this, Kraft Foods is planning to invest a minimum of $10m in our Dover plant with the creation of 29 new full-time jobs by 31 March, 2013.
“We plan to install the equipment in the fourth quarter of this year and the first quarter of next year. We anticipate the new equipment will be up and running in March 2013.”