PepsiCo‘s Frito-Lay snacks division is to invest US$38m in the expansion of its distribution and manufacturing facility in Connecticut.

The 370,000 sq ft plant in Killingly, which employs around 600 staff, will benefit from “innovative technology” for material handling and delivery. The enhancements are designed to “increase efficiency, improve delivery, while also reducing the company’s environmental footprint”, the company said.

State financial assistance has been secured from the Department of Economic and Community Development, with up to $3m in tax credits and $1m in tax exemptions.

“Frito-Lay has a long and proud history in Killingly and we are pleased with the State of Connecticut’s commitment to our continued growth and success,” said Leslie Star Keating, senior vice president, supply chain at Frito-Lay North America.

The investment follows a $66m expansion project at the same facility in 2010, which added around 70,000sq ft and included the installation of new machinery and equipment.