3M Co. will invest $57.6 million to expand its flagship health care plant in Brookings, S.D., the company said early Friday.
The project includes adding 44,000 square feet to the existing factory and $40.2 million of new equipment. The factory makes medical tapes, dressings, surgical drapes and other wound care products. The building was last updated in 1991.
In a statement, Joaquin Delgado, executive vice president of 3M's health care business unit, said that the investments in Brookings "are designed to provide increased manufacturing capacity to support growing demand for our products."
Construction will begin in April. Equipment will be installed periodically and be completed by December 2018, the company said. The project will create 60 new jobs by 2019.
It represents the second phase of a larger site-improvement plan. Last year, 3M committed $11.7 million to update equipment at the facility.
That and the newly announced expansion were facilitated through South Dakota's Reinvestment Payment Program, which offers 3M sales tax rebates on construction and equipment purchases. Under the program, which is designed to stimulate manufacturing investments, 3M will also receive help with job-training costs.
3M is also receiving tax rebates through the city of Brookings and a five-year property tax discount through Brookings County.
Officials noted that the expansion in Brookings comes at a time of growth for 3M's $5.3 billion health care business. The unit's revenue grew 4 percent last year and is on track to grow again.
