Planters Company Clears Major Hurdle for $20 Million Expansion at Arkansas Facility

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Researched by Industrial Info Resources (Sugar Land, Texas)--Planters Company Incorporated, a business unit of Kraft Foods Company (NYSE:KFT) (Northfield, Illinois), recently received approval to access local incentives for a planned expansion at the company's roasted nut manufacturing facility in Fort Smith, Arkansas. However, the project still needs approval from the company's corporate board to proceed with the $20 million capital expenditure.

The investment calls for the construction of a 28,000-square-foot building and installation of new equipment and machinery to allow for the use of more sustainable packaging materials. A final decision on the project is expected within the next six months.

Last month, the City of Fort Smith approved three separate ordinances for an industrial revenue bond agreement that would allow Kraft to cut its property tax bill by 50% on the new equipment and addition. The payment in lieu of taxes mechanism would be in place for 12 years, at which time the tax obligation would return to 100%.

Kraft, the world's second-largest food company posted more than $40.4 billion in net revenue in 2009.

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