Frulact USA, a food manufacturing company that develops and produces value-added and tailor-made ingredients for the food industry, will establish a manufacturing complex in Logan, Utah. The $75.6 million project is expected to create 131 jobs during the next 15 years.
Logan’s specific location offered strategic supply chain advantages in the form of access proximity to both key customers and raw ingredients, according to state officials.
“We at Frulact place a high importance on our company’s reputation as a major innovator as a solution ingredient supplier to the food industry. Given our expertise in fruit preparations and the plant-based products market segment, we believe Logan is a perfect fit for our new expansion to North America,” said Rogerio Silva, Frulact’s chief operating officer. “The solution Logan offered featured a combination of an existing workforce with food processing skills at all levels, proximity to Western U.S. customers, and property solution with valuable infrastructure, all of which played a decisive role in our decision. We’re also very grateful to the state of Utah and its considerable support for this project.”
The company received a temporary, marginal tax reduction for its expansion in rural Utah, according to state officials. The post-performance corporate incentive is part of the Legislature’s Economic Development Tax Increment Financing program. Frulact may receive up to 25% of the additional state taxes it will pay over the 15-year life of the agreement in the form of a Utah Legislature-authorized Rural Economic Development Tax Increment Financing (REDTIF) tax credit. Each year that the company meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“Bringing this established European brand to Logan shows that the world has its eyes on Utah,” said Theresa A. Foxley, president and CEO of EDCUtah. “Frulact will play an integral role in improving the supply chain resilience of key food manufacturers in Utah and the western U.S. We know Frulact will find a welcoming community to begin establishing their U.S. presence.”
Frulact is a food manufacturing company that develops and produces value-added and tailor-made ingredients for the food industry, especially fruit preparations, plant-based products, and flavors. These products are typically used in yogurts, ice creams, beverages, pastries, and desserts.