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Wells Enterprises Requests $11.6 Million in Tax Incentives for $175 Million Expansion in Dunkirk

by Alice

Wells Enterprises, the Iowa-based ice cream manufacturer owned by Ferrero SpA of Italy, is requesting $11.6 million in tax breaks from the Chautauqua County Industrial Development Agency (CCIDA) to support a $175 million expansion of its Dunkirk facility. The company, which produces popular frozen desserts, is seeking sales tax relief and a payment-in-lieu-of-taxes (PILOT) agreement to help fund the expansion of its 217,500-square-foot manufacturing plant.

The proposed expansion, which will add a 133,000-square-foot facility on 18.3 acres of land at 1 Ice Cream Drive, is part of a broader $500 million investment in the region. The new phase follows a $87 million investment in electrical upgrades and new production lines, as well as a $250 million rebuild of the existing plant.

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In a recent application submitted to the CCIDA, Wells outlined plans to construct a specialized chocolate processing plant—the first of its kind in the U.S. ice cream industry—designed to accommodate up to 15 production lines by 2028. The project will also create 20 new jobs, in addition to retaining 327 production jobs and 61 professional staff. Salaries for the new positions are expected to range from $50,000 for production roles to $80,000 for professional positions.

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The state has already committed $12 million in Excelsior Jobs tax credits and a $6 million grant from Empire State Development to support job creation by 2029. The CCIDA will hold a public hearing on November 12 at the State University of New York at Fredonia to review the application, with final board approval expected later that month.

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