2016 Year in Review No. 7: Kraft, 3M move on multimillion-dollar plans

SPRINGFIELD—A pair of manufacturers went before Springfield City Council in 2016 with over $70 million in expansion plans, built on municipal tax incentives.

Kicking off the requests at the first council meeting of the year Jan. 11, Kraft Heinz Co. (Nasdaq: KHC) officials said its Springfield plant was in the running for eight new manufacturing lines tied to the production of Kraft Macaroni & Cheese and Kraft Singles. The new lines would add 100-110 jobs paying an estimated $48,000 per year at the 2035 E. Bennett St. property.

In March, the company announced it had been selected, all the city of Springfield had to do to secure an estimated $33.2 million investment by Kraft was approve a Chapter 100 industrial revenue bond plan financing up to $36 million in equipment purchases. At it’s March 21 meeting, council unanimously voted yes.

At its Nov. 14 meeting, council unanimously passed a resolution forwarding plans by St. Paul, Minn.-based 3M Co. (Nasdaq: MMM) to invest $40 million to expand Springfield operations and create over 90 new jobs.

The jobs are expected to add $5.3 million to 3M’s local annual payroll. Salaries at 3M in Springfield average $58,000 a year, plus benefits, for its 335 area workers. Springfield payroll for 3M currently exceeds $30 million, and the average employee term is 12 years.

Final plans for 3M are expected to return to council for approval in January.