Ahold USA, which operates Giant Food Stores, plans to invest about $63m to set up a meat processing facility in Pennsylvania, US, a move that is expected to create 850 new jobs.
Ahold USA has entered into an agreement with Vantage Foods to operate the facility.
The 162,000ft² facility, which will be located in Lower Allen Township, Cumberland County, will process and package beef and pork products, which will be sold at Giant stores in Pennsylvania and Maryland.
The facility will be certified by the Department of Agriculture and built to meet the criteria established by Leadership in Energy and Environmental Design (LEED), a leading green building standard.
Ahold USA and Vantage Foods have received a funding offer from the Pennsylvania Department of Community and Economic Development - Ahold USA will receive $1.275m to invest in the project, while Vantage Foods is eligible to apply for up to $1.7m in Job Creation Tax Credits and $360,000 in job training assistance.
Ahold USA supply chain executive vice president Mark McGowan said that the meat facility is an important investment and the incentives will enable the company to ensure its long-term success.
The facility is expected to open in late 2013.
Ahold USA, a subsidiary of Dutch international retailer Ahold, operates four regional retail grocery divisions - Stop & Shop New England, Stop & Shop New York Metro, Giant Landover, and Giant Carlisle - that together have more than 750 supermarkets in 14 states.
Privately-held Vantage Foods is involved in the production and sale of packaged meats to retail stores, and operates on long-term supply agreements with leading retailers in North America.
