Kraft Heinz is investing $30 million to expand its new Davenport facility in the Eastern Iowa Industrial Center.
The more than $225 million, highly automated plant, sits on around 70 acres in northwest Davenport, south of Slopertown Road and east of Hillandale Road. Replacing the company's former Rockingham Road factory, the 382,000-square foot facility produces millions of pounds of Oscar Mayer deli meat and other products.
Construction has been completed in phases, with the plant first operational in 2017. And now, spokesman Michael Mullen said Kraft is expanding the factory, which currently has around 800 employees.
"The Kraft Heinz facility at the Eastern Iowa Industrial Park was originally designed with the future in mind, with flexibility built into its design and layout," Mullen said.
He said the company is adding 20,000 square feet of inventory storage and 18,000 square feet of slice line capacity, to increase capacity for its Oscar Mayer deli shaved line.
Mullen expects the $30 million expansion to be completed and operational by August.
The industrial center plant has been an example of Kraft Heinz cutting costs while ramping up efficiency, since 3G Capital LLC took over Kraft in 2015. The Davenport factory was one of the first the company built after the acquisition.
Compared to the old Rockingham factory, the plant is now producing more with fewer employees. Kraft Heinz received millions of dollars in state and city tax breaks to make the change.
The outdated Kraft Heinz Rockingham location stopped operations Oct. 5, Mullen previously said, adding all cold cuts processing and packaging is now being done at the new facility, at 9401 Granite Way.
Plans have yet to be announced for what might be done with the former plant.