McKee Foods to expand operations in Augusta County

McKee Foods Corp. plans to spend $34 million to expand production at its manufacturing facility in Augusta County, a project that is expected to create 54 new jobs.

The Stuarts Draft plant currently employs 1,000 workers and is one of the largest employers in Augusta County. McKee Foods,  a privately held company based in Collegedale, Tenn., produces snack foods, cereals and baked goods.

Virginia competed against Arkansas for the project, where McKee Foods also has a plant. To secure the project, Gov. Terry McAuliffe approved a $300,000 performance-based grant from the Virginia Investment Partnership program, an incentive available to existing Virginia companies.

Additional funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.

McKee Foods, which has annual sales of about $1.2 billion, has operated the plant in Augusta County for 24 years.

“The business climate in the commonwealth is very favorable, and we have found Stuarts Draft to be geographically well-positioned to serve the markets for our brands,” Randy Smith, vice president of Stuarts Draft operations for McKee Foods, said in a statement.

The company employs more than 5,000 people in Collegedale; Stuarts Draft, Gentry, Ark.; and Kingman, Ariz.

Its brands include Little Debbie Snacks, Drake’s Cakes, Sunbelt Bakery snacks and cereals, and Heartland and Fieldstone Bakery food products.