Frito-Lay North America Inc., a division of PepsiCo, is investing $38 million to expand its distribution and manufacturing plant in Killingly, Connecticut.

"Frito-Lay has a long and proud history in Killingly and we are pleased with the State of Connecticut's commitment to our continued growth and success," said Leslie Star Keating, senior vice president, Supply Chain, Frito-Lay North America.

The plant, which employs more than 600 full-time employees, services Connecticut and other Northeast retailers, and exports products for the military overseas. Frito-Lay said it plans will equip its 370,000-square-foot Killingly facility with innovative technology for material handling and delivery. While information on any additional hiring estimates was not immediately available, the firm said its enhancements at the Killingly facility will increase efficiency, improve delivery, while also reducing the company's environmental footprint.

"In the short term, this agreement will allow Frito-Lay to invest in an advanced high-tech warehouse distribution system for this facility. But more importantly, it will ensure that the long terms plans for Frito-Lay include its operation in Killingly," said Governor Dannel P. Malloy. "Frito-Lay, with facilities all across the country, could have made this investment in any number of locations, but it chose Connecticut. I think this speaks volumes about what we're doing here to improve the business environment."

As an incentive, state financial assistance for the project will be provided by the Department of Economic and Community Development, with up to $3 million in Urban and Industrial Sites Reinvestment Tax Credits. Connecticut Innovations is expected to approve up to $1 million in Sales and Use Tax Exemptions.

"It is outstanding that the 600 jobs at Frito-Lay are being preserved and that we are solidifying Frito-Lay's presence in northeastern Connecticut for years to come," said Senate President Donald E. Williams, Jr. "Frito-Lay will continue to be an asset to our economy with the promise of future job growth."

Frito-Lay undertook a $66 million expansion project at the Killingly plant in 2010, adding more than 70,000 square feet and installing new machinery and equipment. A year later, the plant became the state's first existing manufacturing plant to earn LEED Gold status for its green design and construction features and water and energy reduction programs.