McKee Foods to expand mini-doughnuts facility in US

US-based McKee Foods plans to invest $19m to expand production capacity at its manufacturing facility in Stuarts Draft, Augusta County, Virginia.

The expansion project, which will boost the production of mini-doughnuts, will involve installation of new equipment by June 2013 and is likely to create 78 additional jobs over a three-year period.

McKee Foods Stuarts Draft operations vice president Randy Smith said a major factor in the company’s decision to open a manufacturing plant in Augusta County was the skilled workforce.

"Today, we’re pleased to be able to expand our production capabilities here, to employ more of our neighbors and to add to the more than $46m annual economic impact we currently make – all for the betterment of our local communities," he added.

The company will receive a grant of $200,000 for the project from the Governor’s Opportunity Fund, and is also eligible for a state tax credit.

McKee Foods economic development director Dennis Burnett said the company would be given a tax break on the new machinery and tools installed over a five-year period, and the savings would be invested back into the facility.

In addition, Virginia Jobs Investment Program (VJIP), a programme of the state that encourages the expansion of existing businesses and the start-up of new business operations, will offer funding and services to the firm to support recruitment, training and retraining activities related to the plant.

The Stuarts Draft facility, which was established in 1990 and has a workforce of 800 people, has seen a production increase of 24% over the last two years.

McKee, headquartered in Collegedale, Tennessee, makes snack cakes, breakfast cereals, granola, creme-filled cookies, crackers, and snack bars under brands such as Little Debbie, Sunbelt, Heartland and Fieldstone Bakery, and has annual revenues of more than $1bn.