Barilla to Build Pasta Plant and DC Costing $96 Million, Creating 121 Jobs

Barilla America, Inc. (Bannockburn, Ill.), maker of a top-selling brand of pasta, and Jacobson Warehouse Company, Inc. (Des Moines, Iowa), a supply chain logistics services company, are planning a new pasta-making and distribution facility in Avon, N.Y. Barilla will be investing approximately $87.7 million to build its second U.S. pasta-making and distribution facility; Jacobson will be investing approximately $8.5 million. The plant, to be located in Avon, N.Y., 23 miles south of Rochester and 50 miles east of Buffalo, will service the Northeastern United States, which accounts for more 50% of Barilla's U.S. sales.

When complete, the Barilla pasta plant and its accompanying warehouse will employ close to 120 New York State residents and pour millions of dollars into the local economy. The company also estimates that its construction costs will create millions of dollars in local revenue.

When fully operational, Barilla projects that the plant will produce 100,000 tons of pasta - including cuts ranging from farfalle to ziti. At its complete size, the Barilla production facility will encompass a 49-acre lot and include a 100,000 sq.-ft. plant and a 200,000 sq.-ft. distribution center.

The companies plan to break ground on the project in June 2006, with production starting by mid-June 2007 and full operations in place by late June 2009.

Barilla and Jacobson worked closely with local and state elected officials to secure government grants and loans needed to build the facility.

"We sought a location that felt like a home away from home," said Barilla America President Kirk Trofholz. "Parma, Italy has been our home for almost 125 years, ever since Pietro Barilla opened his small pasta and bread shop. We were looking for a community that would provide the same hometown feel as Parma, as well as the right mix of benefits. We found all of that in Avon."

Factors influencing Barilla America's decision to select Avon over other contenders for its new facility include the town's skilled workforce, the region's excellent living conditions, Avon's convenient access to both railroads and major highways, and its proximity to Barilla's customer base in the Northeast.

Jacobson Warehouse Company, Inc., a division of Jacobson Companies, will build and operate the warehouse. Jacobson, which also operates Barilla's Ames, Iowa distribution center, will employ the people working in the warehouse and will finance that facility's construction. Jacobson Packaging Company will install packaging lines and employ the people to build store displays and Club store packaging, as they currently do for Barilla in Des Moines, Iowa.

Based in Bannockburn, Illinois, Barilla America, Inc. was established in 1996 by the Barilla Group. Barilla America is the top-selling brand of pasta in the United States, with a 20 percent market share. The Barilla Group, a family-owned manufacturer of pasta and other grain-based food products since 1877, is the world's largest pasta manufacturer.

The Avon facility will be Barilla's second manufacturing plant in the United States. Barilla America opened its Ames, Iowa plant in 1998.

Source: Barilla America, Inc.

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