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Area Development - Site Selection, Facility Planning and Workforce Development

Sofidel Expands Duluth, Minnesota, Production Operations

10/30/2024
Sofidel, an Italian multinational producer of tissue paper, plans to expand its operations in Duluth, Minnesota. The $200 million project is expected to create at least 160 jobs.

The company will expand its existing facility into an integrated production plant where raw materials are processed, manufactured, and packaged into finished goods. The investment will also include the construction of an automated warehouse for product storage and distribution. Construction is scheduled for completion in late 2026.

"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 project is being supported by $5 million in business expansion funding from the State of Minnesota. Funding comes 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 and capital investment targets. The MIF provides financing to help add new workers and retain high-quality jobs – with a focus on industrial, manufacturing, and technology-related industries – increasing the local and state tax base and improving Minnesota's economic vitality.

"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," noted 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 Group produces tissue paper for sanitary and domestic use. The company currently operates in thirteen countries, twelve in Europe and the U.S. (eight states). Its presence in the U.S. can be found through its brands Nicky and Papernet.

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