The state plans to offer $4 million in tax incentives to help Frito-Lay expand a distribution and manufacturing plant in Killingly, Gov. Dannel P. Malloy announced today.
The state said the incentives will be used by Frito Lay North America Inc. to help offset the costs of a $38 million plan to update the Killingly plant's technology for material handling and delivery. The 370,000-square-foot plant employs more than 600 full-time people.
“Frito-Lay, with facilities all across the country, could have made this investment in any number of locations, but it chose Connecticut," Malloy said in a statement. "I think this speaks volumes about what we’re doing here to improve the business environment.”
Frito-Lay, a division of PepsiCo, will receive state financial assistance from the Department of Economic and Community Development in the form of tax credits and tax exemptions. Exemptions are subject to approval by the Connecticut Innovations board of directors.
The Frito-Lay plant, which underwent a $66 million expansion and update just two years ago, serves retailers throughout Connecticut and many Northeast states. It also sends products overseas for the U.S. military overseas.
“In the short term, this agreement will allow Frito-Lay to invest in an advanced high-tech warehouse distribution system for this facility," Malloy said. "But more importantly, it will ensure that the long terms plans for Frito-Lay include its operation in Killingly.”