Sofidel is making a $200 million expansion in Duluth. Governor Tim Walz announced $5 million funds from the Stare of Minnesota will support the business expansion. The investment will create at least 160 new jobs, which is estimated to triple the company’s current workforce size.

“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,” said Governor Walz. “In partnership with our Department of Employment and Economic Development, we are creating high-growth, high-demand, good-paying jobs, and building a stronger economy all across our state.”

The $5 million in funds is from the Minnesota Department of Employment and Economic Development’s (DEED) Job Creation Fund (JCF) and Minnesota Investment Fund (MIF). The JCF provides financial incentives to new and expanding businesses that meet certain job creation. The MIF provides funds to help add new workers and retain high-quality jobs. The MIF’s funding is focused on industrial, manufacturing, and technology-related industries.

“This is an incredible investment in Duluth and the entire state – one that reinforces the company’s commitment to excellence in the paper manufacturing industry and northern Minnesota’s economic vitality,” said DEED Commissioner Matt Varilek. “It’s an important demonstration of a public/private partnership – and Sofidel’s presence and efforts will contribute not only to the local and state economies but to the fabric of the community as well.” 

Sofidel is expanding their existing facility into an integrated, state-of-the-art production plant. The raw materials are processed, manufactured, and packaged into finished goods such as paper towels, bath tissues, and napkins.

“This expansion is a testament to our long-term commitment to growth and innovation in the North American market. In Duluth, we found a favorable operating environment, with a skilled and dedicated workforce, and strong partnerships with local institutions and the community. These factors encouraged us to further invest in this facility,” said Simone Giacomelli, Integration Manager at Sofidel. “We are also grateful for the tremendous support from the State of Minnesota and the City of Duluth, which has been essential in bringing this project to life.” 

The company will construct an automated warehouse for product storage and distribution. Construction will take place in phases beginning in late 2024 and continuing through late 2026. The completed warehouse size will be nearly 600,000 square feet. 

“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. “This is an investment in funding, jobs and to bringing a vibrant life to this manufacturing facility for decades to come. Duluth has a long and proud tradition of making things, especially related to the regional natural resource economy, and we’re thrilled Sofidel sees that and is becoming part of that tradition.”