NEW ULM, MINN. — A $25 million investment in new equipment infrastructure will lead to the elimination of 90 jobs at Kraft Foods Inc.’s plant in New Ulm. The facility manufactures Velveeta products, Handi-Snacks on-the-go snacks, Deli Deluxe cheese slices, MilkBite milk and granola bars, and sliced and bulk processed cheese for food service customers.
Kraft said the move will result in the loss of the equivalent of 80 full-time hourly positions and 10 salaried positions.
Kraft has been in New Ulm since 1955 and employs 555 at the facility. As part of the restructuring, the plant’s Velveeta production will move to a Kraft plant in Champaign, Ill., and the New Ulm plant will begin making bulk food service cheese that is currently being produced at a Missouri plant that also is changing over its production lines. Additionally, the MilkBite line will be eliminated.