September 13, 2012

CT bites again on Frito-Lay expansion

For a second time in two years, Connecticut is giving snack-food giant Frito-Lay millions to expand its distribution and manufacturing plant and add jobs in Killingly.

Gov. Dannel P. Malloy announced Thursday state is providing Frito-Lay $4 million in tax credits and exemptions to help the company purchase a "high-tech warehouse distribution system," for its Killingly facility.

The incentives come some two years after former Gov. M. Jodi Rell served Frito-Lay $3 million to upgrade its wastewater treatment equipment.

Frito-Lays' plant, which employs more than 600 full-time people, services Connecticut and other Northeast retailers, and exports products for the military overseas.

The company plans to invest about $38 million to equip the 370,000-square-foot Killingly facility with technology for material handling and delivery.

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; and Connecticut Innovations (CI), with up to $1 million in Sales & Use Tax Exemptions. The tax exemptions are subject to approval by the CI board of directors.

The company undertook a $66 million expansion project of the Killingly plant in 2010, adding more than 70,000 square feet and installing new machinery and equipment.

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