Post Holdings plans to nearly double the size of its Michael Foods manufacturing and distribution facility which opened in 2019 in Norwalk, Iowa.
The 150,000-square-foot plant, which processes eggs and precooked egg products, will add an estimated 132,000 square feet to its existing footprint. The expansion of the facility will create approximately 186 new jobs. Construction is expected to begin in July with completion targeted for December 2024, the company said. The expansion will cost the company $146 million, the Des Moines Register reported.
“As the nation’s leader in valued-added egg products, this expansion will allow us to continue to meet our customers’ needs,” Mark Westphal, president and CEO of Michael Foods, said in a statement.
The Post subsidiary is the largest processor of eggs in liquid, patty and other forms, that are designed to save cook and prep time for restaurants and hotels.
Prices for eggs have soared during the last year because of the outbreak of the deadly bird flu as well as a rise in inflation. Year-over-year inventory for egg-laying hens is 15 to 20% lower than last year, Wells Fargo told Food Dive in March.
Still, demand for eggs remains robust, especially as consumers continue to travel and eat out more as they get back to their daily routines following the pandemic.
Food manufacturers have been expanding existing facilities or building new ones in order to meet future demand for their offerings.
Post has been especially active. Last summer, the company said it planned to spend up to $110 million to expand its cereal production capacity at a Nevada facility that serves the West Coast.
In 2021, it announced plans to spend $86 million to construct a new 215,000-square-foot manufacturing facility in Ohio. At the time, the company said the facility would likely produce protein drinks for BellRing Brands. Post divested the 80% of its ownership in BellRing in March 2022 to its shareholders.