Del Monte Freshcut

Leading North American marketer and distributor Del Monte Fresh Produce has expanded its US logistics network with a new distribution centre in the works.

Del Monte will receive US$900m in grants to open the 178,000ft2 distribution centre in the Pencader Industrial Park in New Castle, Delaware.

The Delaware Council on Development Finance approved a US$259,000 ‘performance’ grant to create 30 jobs at the new distribution centre, and has said it will match 3 per cent of Del Monte’s capital expenditure up to US$654,000.

Del Monte itself will invest USS$22m in the new state-of-the-art facility, which will be used for fresh cut fruit, ripening avocados and bananas, and will house refrigeration and warehouse space as well as loading docks and office space.

Paul Rice, senior vice president of Del Monte Fresh Produce’s North American Operations, said the company was excited to tap into the workforce of the “most populous county in the state with close proximity to the University of Delaware”.

“Delaware is not only an ideal location for our company to further develop our robust Northeastern operations, but will also give us the ability to provide jobs and growth to the surrounding community,” Rice said.

Bernice Whaley, Delaware Economic Development Office Director, said they were appreciative of all the partners who collaborated to bring Del Monte Fresh Produce to Delaware.

“Thanks to the collaborative effort a building which has been on the market for nearly a decade will be revitalised and create new manufacturing jobs in our state with the potential to add more,” Whaley said.

The former AstroPower site was purchased by the Christina School District in 2005 to use as a high school, though work on the site was never completed and was put back on the market in 2011.

The Del Monte deal is set to close on 20 May, 2017.