Kraft Heinz says it is planning to invest $3 billion in upgrades to its U.S. manufacturing facilities, in hopes of lowering costs and offsetting the impacts of tariffs from the Trump administration.
According to Reuters, the May 14 announcement marks the largest such investment made by the company in a decade, and will cover the 30 plants Kraft Heinz operates across the U.S. Although the vast majority of products the company sells are made domestically — including ketchup, macaroni and cheese, and cream cheese among others — Kraft Heinz has still dealt with added costs from tariffs, due to consumers buying less in the face of economic uncertainty. The company also imports coffee for its Maxwell House brand, which is currently subject to a 10% tariff.
Roughly $400 million will be used to build a previously-announced distribution center in DeKalb, Illinois, creating 60 new jobs. In total, Kraft Heinz estimates that the $3 billion investment will lead to 3,500 new construction jobs, combined among the factories getting upgrades.
Other U.S. companies have announced similar investments in recent weeks as well, including food brand Mars Inc., brewer Anheuser-Busch, and facial tissue manufacturer Kimberly-Clark. Mars said it is planning to open a new $450 million factory for its Royal Canin pet food brand, Anheuser-Busch said it is investing $300 million in upgrades to its existing U.S. manufacturing facilities, and Kimberly-Clark has committed to spend $2 billion on expanding its domestic operations over the next five years.
.png?auto=format%2Ccompress&fit=crop&h=141&q=70&w=250)
