Sofidel receives $5 million incentive from state for expansion project

DULUTH, Minn. (Northern News Now) - The State of Minnesota announced a $5 million incentive to help a Duluth-based paper plant expand.

The incentive will help Sofidel move forward with its $200 million expansion project.

Sofidel is an Italian-based company that recently acquired the mill property in West Duluth.

Company leaders say the nearly 600,000-square-foot expansion will create about 160 new jobs, tripling their local workforce.

Construction is expected to be in phases beginning in late 2024 and continuing through late 2026.

Gov. Tim Walz says this investment reinforces that Minnesota is a top place to live and work.

"This expansion is a testament to our long-term commitment to growth and innovation in the North American market," said Simone Giacomelli, integration manager at Sofidel. "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,"

"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," Duluth Mayor Roger Reinert said. "This is an investment in funding, jobs, and to bringing a vibrant life to this manufacturing facility for decades to come."

This comes after the Duluth City Council approved $14 million in tax assistance for Sofidel on Tuesday.

Councilors say they approved that incentive because of job growth.

However, one councilor cited concerns saying the TIF agreement did not state how long those created jobs will last.