Gov. Eliot Spitzer announced last month that Beech-Nut Nutrition Corporation, producer of all-natural baby foods, is investing more than $124 million in the construction of a new 650,000 square-foot processing and packaging plant in the town of Florida and relocating its corporate headquarters to this new facility.

Beech-Nut is currently headquartered in St. Louis. The company is replacing its aging Canajoharie plant. The 100- plus year old facility suffered extensive damages during the Mohawk River flooding in June 2006, scrapping prior plans to undertake a more modest equipment upgrade. The considerable flood damages prompted Beech-Nut’s decision to construct a new plant that will feature modernized processing equipment.

The company expects to retain and relocate 356 jobs at locations in nearby Canajoharie and Fort Plain. The new plant and headquarters will lead to the creation of 135 new jobs in the town of Florida. The Empire State Development Corporation and Beech-Nut have agreed to a series of project milestones, through which the company will be eligible to apply for up to $18 million in funds for construction, and machinery and equipment costs. Under the agreement, Beech-Nut will receive the full amount upon reaching project targets set by the Empire State Development Corporation. A portion of the funds will come from the Empire State Development Corporation’s JOBS Now grant program, which offers financing assistance for major business expansion and job creation efforts to private, non-retail companies. As the project is located in the Amsterdam Empire Zone, Beech-Nut will also be eligible for an estimated $42 million in Empire Zone benefits, based on meeting predetermined employment targets.

Beech-Nut has also reached an agreement with the Montgomery County Industrial Development Agency for up to $38.5 million in tax incentives. The company is eligible to apply for: a $2 million grant from the New York State Energy and Research Development Authority; a $750,000 grant from the Department of Housing and Community Renewal’s Office for Small Cities; and up to $250,000 in grants from National Grid. Beech-Nut also will receive $3 million from a State Assembly appropriation grant. “Beech-Nut’s continued success in Montgomery County is a story of resilience,” Spitzer said. “Not only will this new facility expand the state’s manufacturing base, it will also be a boon for local farmers and the entire region.”

Silver said, “The presence of Beech-Nut’s parent corporation’s headquarters here in Montgomery County not only builds upon one of the nation’s prestigious food company’s long tradition in our state, but it also stabilizes our highly skilled manufacturing workforce with good paying jobs and confirms that New York State is a hospitable place to conduct business. From our farms to our suppliers to our processors to our wholesalers and retailers, we will make this state ‘number one’ all along this important economic food chain. Our joint commitment here today is to strengthen the economy of Montgomery County and all of the Mohawk Valley, a commitment the Assembly is backing up with an investment of $3 million.”

Empire State Development Upstate Chairman Daniel Gundersen said, “We are pleased that a homegrown company like Beech-Nut continues to be so successful. The added benefit of having the Beech-Nut corporate headquarters here in the Town of Florida will have a positive effect throughout the county.” President and CEO of Beech-Nut Christoph Rudolf said, “Beech-Nut has been a proud contributor to the economy of upstate New York since our founding in 1891. We thank the state for giving us the opportunity to plant our roots even deeper and advance our mission of providing the best baby food available.”