Governor Jennifer M. Granholm today announced General Mills Operations Inc., a wholly owned subsidiary of General Mills Inc., will invest approximately $32 million to expand its Yoplait yogurt plant in Reed City. The project will create 52 new Michigan jobs, including 25 directly by the company. Assistance offered through the Michigan Economic Development Corporation and Reed City helped convince the company to expand in Michigan.

“General Mills' decision to invest and grow in Michigan is a testament to our state’s excellent workforce and competitive business climate,” Granholm said. “This expansion will create good jobs for Michigan workers and anchor General Mills in the Reed City community for years to come.”

Based on the MEDC’s recommendation, the Michigan Economic Growth Authority board today approved a state tax credit valued at $166,000 over seven years to win the company’s investment. To assist the expansion, the MEDC will make available $500,000 in Community Development Block Grant funding for wastewater treatment plant improvements. Reed City has approved a 12-year abatement worth $5 million to support the project.

“The MEDC and Reed City combined to make a strong business case to win this significant investment and help keep an important area job provider and the world’s largest yogurt plant going strong,” MEDC President and CEO James C. Epolito said.

An economic analysis conducted by the MEDC estimates that increased economic activity created by the new facility will generate an additional 27 indirect Michigan jobs, in addition to the 25 created directly by the company. The project is expected to generate more than $22.9 million in personal income for Michigan workers over the life of the tax credit.

“General Mills’ expansion of our Reed City facility will include investments in technology and improvements to the plant. A key factor in this investment is our partnership with the state of Michigan,” General Mills Plant Manager Susan Fleitman said. “The Reed City facility has been part of this community for more than 100 years, and General Mills is proud to build on that legacy.”

The General Mills expansion is one of seven economic development projects the governor announced today. In all, they are expected to create and retain a total of 2,868 Michigan jobs.

General Mills, with annual net sales of $12.5 billion, is a leading global manufacturer and marketer of consumer food products. The company’s global brand portfolio includes Betty Crocker, Pillsbury, Green Giant, Häagen-Dazs, Old El Paso and more. It also has more than 100 U.S. consumer brands, including Cheerios, the No. 1 selling cereal in America, and more than 30 others which generate annual retail sales in excess of $100 million. General Mills also is a leading supplier of baking and other food products to the foodservice and commercial baking industries.        

“We are thankful to General Mills for its decision to expand the Yoplait plant in Reed City,” Mayor Darlene Fuller-Talaske said. “We are equally grateful to the state of Michigan for its continued support of the city and General Mills. This announcement means that success will continue and result in jobs and economic development and we are proud to be part of the endeavor.”

In her 2007 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21^st century. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 190,000 jobs as a result of targeted assistance provided by the MEDC.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the Michigan Economic Development Corporation’s initiatives and programs, visit the Web site at www.michigan.org.

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