Albany, Oregon Gatorade Plant on Hold

Construction began in mid-April to connect the city’s water and sewer system to the PepsiCo site.

Photo courtesy: PepsiCo

(ALBANY, Ore.) - The City of Albany, Linn County, the Albany-Millersburg Economic Development Corporation, the Oregon Departments of Economic and Community Development and Transportation, and PepsiCo have announced an adjustment in the planned Gatorade production and packaging plant in Southwest Albany.

Groundbreaking for the Gatorade and Propel Fitness Water plants has been delayed.

PepsiCo is working to complete a comprehensive analysis of its capacity needs by September. After reviewing the study, PepsiCo and Albany officials will work together to redefine construction plans.

“The Gatorade business continues to grow at healthy rates; and to maintain that pace, we have to match our expansion with our projections,” said Jim Lynch, Senior Vice President, supply chain, for the Gatorade Company.

“We appreciate the partnership approach of government officials from Albany and the state of Oregon as we work together to ensure we are aligned on the timing of our investments. We recognize the government has invested funds, and we will reimburse them for the expenses they’ve already incurred.”

PepsiCo emphasized that Oregon continues to be an important geographic hub for the manufacturing and distribution of Gatorade and Propel and that the strong workforce of Albany was a key consideration for PepsiCo’s investment there.

PepsiCo purchased 243 acres of industrial land in 2006 south of Ellingson Road and north of Beta Drive, east of Highway 99E and the Union Pacific rail line for the two plants.

Construction began in mid-April to connect the city’s water and sewer system to the PepsiCo site.

Work is also underway to acquire right-of-way for an extension of 53rd Avenue which would pass over the rail line and connect with Ellingson Road at the north edge of the Gatorade site.

PepsiCo had been trying to locate property in the Pacific Northwest for several years and approached the Oregon Economic Development Department about two years ago.

The City of Albany’s year-old water treatment plant and upgrades and expansion now underway at its Wastewater Treatment Plant were important factors in the company’s choice of the Albany site.

Access to Interstate 5 and major rail lines were other considerations.