General Mills to invest $32 million in Yoplait plant

by Eric Schroeder
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REED CITY, MICH. — Governor Jennifer M. Granholm of Michigan announced General Mills Operations Inc., a wholly owned subsidiary of Minneapolis-based General Mills, Inc., will invest approximately $32 million to expand its Yoplait yogurt plant in Reed City. The project is expected to create 52 new Michigan jobs, including 25 directly by the company.

Based on the recommendation of the Michigan Economic Development Corp. (MEDC), the Michigan Economic Growth Authority board approved a state tax credit valued at $166,000 over seven years to win the General Mills’ investment. To assist the expansion, the MEDC will make available $500,000 in Community Development Block Grant funding for wastewater treatment plant improvements. Reed City has approved a 12-year abatement worth $5 million to support the project.

In addition to the 25 jobs created directly by the company, the project is expected to generate more than $22.9 million in personal income for Michigan workers over the life of the tax credit.

"General Mills’ expansion of our Reed City facility will include investments in technology and improvements to the plant," said Susan Fleitman, General Mills’ plant manager. "A key factor in this investment is our partnership with the state of Michigan. The Reed City facility has been part of this community for more than 100 years, and General Mills is proud to build on that legacy."

Earlier this year, General Mills received a tax break from the city of Methuen, Mass., to allow it to expand its Columbo/Yoplait yogurt plant.

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