ST. PAUL, Minn. — Duluth manufacturer Sofidel will expand their existing facility in a $200 million project, Minnesota Gov. Tim Walz announced Thursday. 

“Minnesota is a top state for innovation in manufacturing for a reason. Our investment in Sofidel is creating jobs and reinforcing Minnesota as a top place to live and work,” Walz said. 

According to the governor’s office, the new expansion will help expedite Sofidel’s production of paper products such as towels, toilet paper and napkins. 

Funding comes from the Minnesota Department of Employment and Economic Development, Job Creation Fund and Minnesota Investment Fund. 

Construction on the 600,000-square-foot project will begin later this year and will continue into 2026. 

“I am incredibly grateful to the teams at Sofidel and DEED, as well as our fantastic City of Duluth staff, all of whom worked tirelessly to ensure the complicated pieces of this major expansion and development fell into place,” said Duluth Mayor Roger Reinert.  

With the expansion, 160 more jobs are expected.