Kraft will build a new manufacturing facility in Burlington, Vermont, the company announced Tuesday, marking the company’s first new plant in Vermont in nearly three decades.
The company said the facility will create more than 1,000 jobs.
Kraft will open a second plant in the Burlington area by 2020, expanding the factory to produce foods and products for Kraft Foods Inc., a major food producer.
The new plant will be located in Burlington’s former factory complex.
Kraft said it will spend $1 billion on the facility.
“Burlington is a place that has always been a great home for Kraft,” Kraft Chief Executive Jens Juul said in a statement.
“We are proud to have worked with the mayor of Burlington on this project and we look forward to continuing our long-term collaboration.”
Kraft said the new plant, which will be operational in 2019, will employ approximately 2,200 people, and produce food for Kraft foods, which is based in New York.
Kraft also will hire more than 400 people to build facilities for its smaller food companies.
Kraft Foods has struggled to grow and compete in the United States.
The New York Times recently ranked Vermont the third most expensive state for manufacturing jobs, behind California and New York, as well as Massachusetts.
Kraft’s Burlington factory will create about 1,500 jobs, according to Kraft, which said it expects the new facility to generate $1,300 to $1 and $1 per share in annual earnings.
Kraft previously announced plans to expand its plant in Burlington in 2018, expanding to produce cereals and other products for the company.
Kraft is looking to hire a number of people to help with its expansion.
The announcement comes as Kraft’s CEO faces a public relations crisis after he was caught on tape saying that the company would be moving all of its U.S. manufacturing to India if he were president.
Kraft announced in March that it would move all of it production from the U.K. to India.