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September 2, 2010
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General Mills taps Social Circle for plant
Published May 17, 2009
SOCIAL CIRCLE — International food company General Mills will build a $42 million facility on Hightower Trail, creating 112 jobs, the company announced last week.
“General Mills is pleased to be growing our presence in Georgia with the new distribution center in Social Circle,” said Kevin Schoen, vice president of logistics for General Mills. “Our Covington team demonstrates day after day the dedication of Georgia employees and we are excited by the strategic logistic location that Social Circle offers.”
General Mills will contract with a third-party logistics provider to staff and run the 1.5 million-square-foot distribution center, according to a state press release. The facility will distribute the General Mills family of products throughout the Southeast. One of the world’s leading food companies, General Mills operates in more than 100 countries and markets more than 100 consumer brands, including Cheerios, Häagen-Dazs, Nature Valley, Betty Crocker, Pillsbury, Green Giant, Old El Paso, Progresso, Cascadian Farm and Muir Glen, according to company documents.
Headquartered in Minneapolis, Minn., General Mills had fiscal 2008 global net sales of $14.9 billion.
The announcement was met with great excitement at a time when the lagging economy is on the minds of many.
“It’s a great step forward for the city’s economic development program,” said Mayor Jim Burgess. “It represents a significant investment in the community. This is the result of great teamwork between our development authority, led by Gary Lemonds, and the Development Authority of Walton County.”
The city will invest $2 million in necessary improvements for the land, including upgrades in sewer service, but Burgess anticipates using grants and stimulus funds, not city revenues, to cover the cost.
“The Social Circle Development Authority along with the Walton County Development Authority worked hand in hand to bring General Mills to Social Circle,” said Walton County Commission Chairman Kevin Little. “One of the major catches was that we had just proved that we could do what we said with the building of Solo Cup Distribution (also in Social Circle). The county as well as the city offered incentives to lure them from a site in Macon. We are excited to have a company of this magnitude coming to our county especially in these tough economic times.
“This was a great announcement for the citizens of Walton County.”
General Mills has been an employer in Georgia since 1989, when the company opened a manufacturing facility in Covington.
For the new distribution center, the company will use the services of the Georgia Department of Labor to solicit applications and Georgia Quick Start to train employees. Permanent job hiring will not occur until early 2010.
Georgia was tapped over other states and Social Circle beat out cities like Macon as well.
DAWC Executive Director Nancy Kinsey said Social Circle was picked because of the proximity to I-20 and a railroad.
The company will consolidate operations in Chattanooga, Tenn. and Orlando, Fla., Kinsey said.
While the city will take care of the utility needs of the new facility, the county and the Georgia Department of Transportation will make road improvements to handle the increased truck traffic and a spur will be added to the CSX railroad near the 130-acre site to accommodate the use of railroad service.
“We are utilizing various grants such as One Georgia, the Employment Incentive Program and an Economic Development Administrative Grant,” Kinsey said.
The project also calls for state tax incentives and sales tax exemptions, Quick Start funds and job tax credits.
The city and county have joined together to offer a phase-in tax break that will require General Mills to pay 10 percent of property taxes the first year and an additional 10 percent each year for 10 years. The company will pay all school taxes to Social Circle City Schools, officials said.
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