The Swiss company will break ground today for a two-story, 75,000-square-foot expansion at the L.J. Minor plant on West 25th Street. In Solon, Nestle could add 40 to 60 jobs if it builds a new global research and development operation.
View full sizeNestle will break ground today on a two-story, 75,000-square-foot expansion of its L.J. Minor plant in Cleveland. The plant makes food bases sold to restaurants and distributors for use in soups, sauces and other dishes. Nestle also hopes to build a global research and development facility in Solon.CLEVELAND, Ohio -- Global food giant Nestle is gobbling up space in Northeast Ohio, with an expansion starting at its longtime Cleveland manufacturing plant and a major research facility planned in Solon.
Public officials and executives from the Swiss company will break ground today for a two-story, 75,000-square-foot expansion at the longtime L.J. Minor plant on West 25th Street.
The plant, in Cleveland's Tremont neighborhood, churns out food bases - called "flavor solutions" - for national chain restaurants and distributors across the United States and Canada.
In Solon, Nestle could add 40 to 60 jobs if it builds a new global research and development operation for its frozen-foods business. The company already employs 1,947 people in buildings on Harper and Bainbridge roads, at facilities including a plant that makes Stouffer's and Lean Cuisine frozen meals.
The Cleveland project, which might involve additional hiring, represents an investment "well in excess of $20 million," said Neil Dorfman, vice president of manufacturing and technical services for Nestle Professional North America.
He declined to provide a specific dollar amount and, citing competition, he would not discuss the new processing and refrigeration equipment that will help Nestle expand its product lines.
The West 25th Street facility opened in 1951 as L.J. Minor Corp. and became part of Nestle in 1986. The factory - which has never laid off a worker - employs 210 people and accounts for about 20 percent of U.S. sales for Nestle Professional, a division focused on the food-service industry.
"For Nestle Professional globally to succeed, we have to succeed in North America," Dorfman said. "And in order for us to succeed in North America, we have to succeed in Cleveland, Ohio. That business is a cornerstone to the Nestle Professional business in the United States, in North America and globally."
The expansion will be finished in early 2013. To provide parking as the business grows - and to replace a parking lot being eliminated by the new building - Nestle is trying to buy houses and residential lots from property owners to the east, in the block bounded by West 18th and 19th streets, Auburn Avenue and Lamoille Court.
That block contains a handful of owner-occupied homes, rentals and several lots controlled by the city of Cleveland's land bank.
In letters dated July 21st, Nestle offered homeowners 10 percent more than market value for their properties, based on valuations by the Cuyahoga County Auditor's office. Residents said the offers ranged from $23,000 to $40,000.
"I was surprised to get the letter, and when I seen the offer, all I could do was laugh," said James Parshall, who is 70 years old and shares his Auburn Avenue home with his wife, two daughters and four grandchildren. "Everyone that I've talked to says that if the price was right, they would sell. But they're not going to give it to (Nestle)."
Nestle already owns land west of its facility. The company plans to use that property for short-term parking, at least, and shuttle employees across busy West 25th. Dorfman said parking off West 19th would be safer for employees, though securing control of the residential block is not essential for the L.J. Minor expansion.
"Even though there's concern about what's being alleged as low prices, we've got to let the process work itself out between Nestle and the individual property owners," said Brian Cummins, a Cleveland city councilman whose ward includes the L.J. Minor facility.
Tracey Nichols, Cleveland's economic development director, said the city is working with Nestle on the land-bank deals and is providing a $250,000 forgivable loan to the company for acquisition and construction of parking.
"This is really a great news story of an international company wanting to make an investment in the city of Cleveland," Nichols said. "We always like to hear that a company can go to an international board and convince them that this is the right place to invest."
In Solon, Nestle wants to expand its local and regional research facility, which employs 80 people, to an international scale.
The company has 29 such global facilities, which typically cost $50 million to $60 million to build, spokeswoman Roz O'Hearn said. The project would involve a new building on 18 acres near Cannon Road and Hawthorn Parkway.
Nestle owns that property, which is residential and would require a rezoning by voter referendum. The company recently gathered 1,500 voter signatures in an effort to get the rezoning on Solon's November ballot.