The Minnesota Department of Employment and Economic Development announced state assistance for a major expansion by Rahr Malting Corporation in Shakopee, MN.
Supported by Minnesota and Shakopee economic development incentives and tax increment financing, the company is investing $68 million into the expansion to construct four new facilities at their Shakopee headquarters.
This expansion will make the site the world’s largest single-site malting facility. Rahr is a family-owned business that has been manufacturing malt in Minnesota for 168 years and distributing ingredients to brewery and beverage makers worldwide.
The company is expanding its operations to meet increased demand for its products from the craft brewery industry. The expansion includes the construction of a 115,000-square-foot malt house that adds another 70,000 metric tons of annual malting capacity, bringing the facility’s total capacity to 460,000 metric tons.
That’s enough to brew six billion bottles of the average craft beer, or twelve billion 12-ounce cans of the average light beer. This makes the Rahr malthouse and headquarters in Shakopee the world’s largest single-site malting facility.
The expansion also includes a 20,000-square-foot pilot brewery and technical center, a 15,000-square-foot maintenance warehouse, and an 80,000-square-foot warehouse and distribution facility for Brewers Supply Group (a Rahr Corp subsidiary).
The company is also making use of the expansion to add new green spaces, ponding, more parking, and other site improvements to their complex.
Another reason that this expansion is making history is that this is the first time in 168 years that Rahr Corp has asked the state for assistance in expanding and adding jobs. As part of the expansion, the company is creating 28 new full-time jobs at an average wage of $20 per hour.
Rahr Corporation President and CEO William Rahr said in a release announcing the project that they’re very excited to be able to continue growing in their home base of Shakopee, and appreciate the state’s recognition of the economic benefits that Rahr’s expansion will bring to Minnesota.
DEED has approved $610,000 in Job Creation Fund incentives for the Rahr expansion project. DEED Deputy Commissioner Kevin McKinnon said in the release that they thank the company for its continued investment in Minnesota and for its commitment to bring new jobs to the Shakopee area.
The Shakopee City Council has already voted to approve an economic development agreement that allows Rahr Corporation to make use of tax increment financing to partially fund the expansion.