LENEXA, KS. – Lenexa-based snack behemoth Hostess has announced plans to reopen a dormant factory in Clark County, Arkansas.
Hostess plans to invest between $120-140 million in the 330,000-square-foot factory, which has stood unused since it was a Danfoss location that closed in 2020. The renovated bakery is expected to create at least 150 new jobs in the area.
State and local officials, along with representatives from Hostess, unveiled the new signage on the building last week. The deal resulted from cooperation between The Arkadelphia Regional Economic Development Alliance and the Economic Development Corporation of Clark County. The two organizations had reportedly been in talks with Hostess for four months.
Arkansas was one of four states considered for the investment. Jack Thomas, senior project manager at the Arkansas Economic Development Commission, said Hostess chose Arkansas due to their half-cent economic development sales tax. On top of that, Clark County’s Economic Development Corporation promised a $2 million incentive package.
Hostess said the new factory will increase production of Donettes and other snack cakes by at least 20%.
“As Hostess Brands continues to focus on building a socially responsible, modern, snacking powerhouse, we are excited to reach another milestone in our journey to bring a sustainability-first bakery to the Arkadelphia community,” Andy Callahan, president and CEO of Hostess Brands, said in the announcement.
“Time and time again the company shared with us how impressed they were with our support and our responsiveness and doing what it took to win this deal,” Thomas told KATV, “which included local support for the economic development tax that really pushed us over the edge and made this a no-brainer for the company.”
The refurbished plant is slated to open in the second half of 2023.