The company has purchased the 78,000 square foot building to the north of its current 58,000 square foot facility at 2330 Chicory Road in Racine. An additional 4,000 square feet will be added to connect the buildings, said Tom Buhler, director of business development.

The expansion will make room for additional manufacturing, research and development and warehouse and distribution operations.

“We are currently leasing warehouse space and we prefer to have that under our own roof,” Buhler said. “We’re also expanding our production capacity to keep up with demand.”

While considering the expansion, Butter Buds leaders learned they would save 15% on freight costs by relocating to Lake County, Ill. However, the state and city awarded incentives to the company, so it would remain in Racine, he said.

The city incentives come to $550,000 over the next 10 years.

Butter Buds currently has 55 employees. One-third of the 22 new positions will be in production, while the other jobs will be spread among other areas, Buhler said.

From the August 29, 2011, Prepared Foods' Daily News.