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Northwest Ordinance Distilling Plans $39.5 Million Expansion in New Albany, Indiana

05/29/2020
Northwest Ordinance Distilling, a distilled spirits bottling facility, will reportedly invest $39.5 million to expand its production facility in New Albany, Indiana.

The $39.5 million expansion, at the former General Mills Pillsbury plant that closed in 2016, will include $7.5 million in building improvements and $32 million in new processing and bottling lines. The expansion will allow the company to add many new products to its bottling line and will result in the addition of 50 full-time employees, according to One Southern Indiana, the lead economic development organization and Chamber of Commerce for Clark and Floyd Counties.

“We’re excited to be able to grow our Northwest Ordinance Distilling again,” said Jeff Conder, vice president of manufacturing. “The State of Indiana, the City of New Albany, and One Southern Indiana have all been great partners to us and created a very business friendly environment. We look forward to expanding both our manufacturing footprint and our workforce with steady, good-paying jobs.”

As an incentive, The Indiana Economic Development Corporation offered Sazerac of Indiana LLC (Northwest Ordinance Distilling) up to $500,000 in conditional tax credits based on the company’s job creation plans. These incentives are performance-based, meaning the “Today’s announcement is another encouraging sign of positive economic momentum in Indiana,” said Indiana Secretary of Commerce Jim Schellinger. “As we work to get our state’s economy back on track in the midst of so much uncertainty, we are encouraged by the growth that continues across the state, and we are so grateful for Northwest Ordinance Distilling’s commitment to providing quality job opportunities to Hoosiers in southern Indiana.”

The company will be seeking real and property tax abatements, which allow the company to phase in its increased property taxes over time, IEDC officials said. The tax abatements offer the company an estimated savings of $2.26 million over the next ten years. The New Albany City Council is scheduled to vote on final approval of the company’s local incentives next week, with the project contingent upon the council’s approval.

“The Northwest Ordinance Distilling has been a tremendous partner for the City of New Albany since their reopening of the General Mills facility in 2018. Not only do they employ more than 100 workers at a pay averaging nearly 20 percent above the Floyd County average, they have also invested approximately $2 million to reactivate the CSX rail line that originally served the plant,” said New Albany Mayor Jeff Gahan, “I am excited about the possibility of the expansion and look forward to the Council’s decision on June 1st.”

State officials noted Northwest Ordinance Distilling has stepped up in the fight against COVID-19 while producing hand sanitizer for some of the world’s largest organizations in the healthcare, government, military, retail, distribution, airline, pharmacy and banking industries. In addition, the company played a part in the donation of nearly 15,000 N95 respirator masks to the health care industry last month.

Wendy Dant Chesser, president and CEO of One Southern Indiana said, “Northwest Ordinance Distilling choosing to locate its new facility in New Albany was the biggest business news story in 2018. Now, after only two years, the company is again exhibiting confidence in our workforce, government and community, by choosing to expand here. This is a great sign for the recovery of Southern Indiana from the current economic crisis and the company’s prestige and continued success is a boon to the portfolio of industries in the area. As always, 1si is ready to assist them in any way we can.”

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