(WNY News Now) Wells Enterprises’ $425 million expansion in Dunkirk will provide cutting-edge ice cream production capabilities, bolstering the company’s growth in the U.S. market and adding 270 new employment.
DUNKIRK The Board of Directors of the County of Chautauqua Industrial Development Agency (CCIDA) authorized incentives for Wells Enterprises, Inc. at its meeting on November 19, 2024. The incentives, which include a Sales Tax Exemption and a Payment In Lieu of Taxes (PILOT) arrangement, will help the business build its new, cutting-edge facility in Dunkirk. For the corporation, this most recent phase of CCIDA incentives (Phase III) comes after two earlier waves (Phase I in 2019 and Phase II in 2023). All three phases work together to help Wells retain about 380 full-time employment while creating 270 new ones.
The Ferrero Group’s Wells Enterprises announced plans in August 2023 to completely renovate its current manufacturing site in Dunkirk, which is situated at 1 Ice Cream Drive. The facility is crucial to the company’s efforts to grow its nationwide manufacturing network for the Blue Ribbon Classics, Halo Top, Bomb Pop, and Blue Bunny brands. In addition to supporting the facility’s ongoing objectives for expansion in novelty and packaged ice cream, this Phase II project was expected to more than quadruple the facility’s current production output and open the door for future innovation. The Phase II project is expected to generate 250 additional employment by 2028 and cost $250 million in total.
In addition to the previously planned renovation project, Wells said earlier this year that it would construct a brand-new, cutting-edge, 133,000-square-foot Segregated Compound Facility (SCF), which would house a new chocolate factory and provide more manufacturing capacity. With the capacity to operate a 15-line facility by 2028, the SCF would be the first of its kind in the US ice cream industry. By 2030, this Phase III project is expected to generate 20 new employment at an estimated cost of $175 million. The project is expected to generate 150 temporary construction employment.
The City of Dunkirk, Dunkirk School District, and Chautauqua County are the impacted taxing jurisdictions that will receive payments totaling $2,241,980 from the CCIDA on Tuesday, which also offered a 10-year PILOT for the project to assist ensure Phase III can proceed.
New York State Governor Kathy Hochul visited Dunkirk in July to declare that the state is also funding the project with a $6 million grant from Empire State Development and up to $12 million in Excelsior Jobs Program tax credits in exchange for promises to capital investment and job development.
Between Phase II and Phase III, the additional facility raises the project’s overall cost to $425 million. Announced in 2019, the project’s Phase I included $87 million in capital improvements to the current Wells plant, including the construction of new land to house a $7 million power substation.
We are extremely enthusiastic about Wells’ future and how this Dunkirk expansion will contribute to our goal of dominating the US ice cream market. For their steadfast support of our expansion, we are deeply appreciative of the State of New York, Chautauqua County, and the people of Dunkirk. Above all, this demonstrates the dedication and leadership of each and every member of our team in Dunkirk. This is genuinely made possible by their enthusiasm, determination, and operational competence, according to Liam Killeen, CEO of Wells Enterprises.
According to Mark Geise, Deputy Chautauqua County Executive for Economic Development and CEO of CCIDA, Wells has pledged to invest over $500 million in our county over the last five years, demonstrating a remarkable dedication to the Dunkirk community and the local workforce for years and decades to come. In order to help Wells make all three phases a reality and guarantee that we not only contribute to the retention of jobs in northern Chautauqua County but also witness a notable growth in the upcoming years, I am proud of the support the CCIDA has been able to offer.
Wells Enterprises’ dedication to the success of our community is incredibly admirable, and we are honored to back this ground-breaking initiative. Beyond just making ice cream, its growth portends a bright future for Chautauqua County and Dunkirk. We appreciate Wells and the Ferrero Group’s commitment to our area, and we want to express our sincere gratitude to the State of New York and the CCIDA for their crucial funding and assistance in making this project possible,” Chautauqua County Executive Paul PJ Wendel stated.
By adding 270 new employment, this expansion not only demonstrates Wells’ dedication to the neighborhood but also holds forth hope for a better future. In order to ensure that Dunkirk and Chautauqua County continue to flourish and shine, we will work together to clear the path for economic growth and success, said Kate Wdowiasz, the mayor of Dunkirk.
Wells and The Ferrero Group both have a solid track record of achievement. Since its founding in 1946, Ferrero has emerged as a major player in the world market for sweet packaged foods, such as snacks, ice cream, confections, and biscuits. Since its founding as a dairy delivery firm in 1913, Wells has grown to become the largest family-owned and operated ice cream company in the world.
Artone Gets a Loan to Buy Equipment
The November CCIDA board meeting also saw the approval of a $240,000 low-interest loan for Artone LLC, which is based at 1089 Allen St., Jamestown, NY. The loan will be utilized to help the business pay for the $600,000 acquisition of new equipment. The loan had a six-year duration and a 4% interest rate. Artone, which produces furnishings for the hospitality sector, commemorated its 50th anniversary earlier this year.
According to Geise, Artone is a family-run company in Jamestown that has a proven track record of producing high-quality furniture for the lodging and hospitality sectors. We are pleased to help them acquire new equipment that will increase operational efficiency and help the business maintain a competitive edge while boosting capacity and capability.