Sponsored by
In late October, the Governor’s Office of Minnesota and the Minnesota Department of Employment and Economic Development (DEED) jointly announced a significant win for the Star of the North™ – Solventum, a leading global health care company and spinoff of 3M, is committing to the state. With $13 million from the State of Minnesota, the company is investing an estimated $209 million to relocate and consolidate staff and operations to a state-of-the-art research and development facility in Eagan, MN, a Twin Cities suburb. This news means Minnesota will retain an estimated 2,000 jobs and a Fortune 500 company.
The state’s official press release summarizes the news well: “Solventum’s expansion reinforces Minnesota’s track record as a globally recognized leader in manufacturing, health care innovation, and medical technology.”
In fact, Minnesota has long been committed to supporting the life sciences. The state is home to the country’s top-rated hospital (Mayo Clinic) and largest health insurer (UnitedHealth Group); it boasts the headquarters of “Medical Alley,” the world’s foremost network of healthcare organizations focused on transforming the health ecosystem; and the state is consistently top-rated in rankings for best health care systems and life science-related research and development efforts.
But there’s more to Minnesota than health care. No one industry or region dominates. Across the state, business leaders can find strong economic diversity that has existed for decades. Today, from advanced manufacturing and life sciences to agriculture and clean technology, Minnesota is home to businesses as diverse as its workforce.
For starters, Minnesota’s manufacturing sector is seen as the backbone of the state’s economy, representing 13% ($61.4 billion) of the state’s GDP and more than $22.5 billion in manufactured exports annually (2023). Minnesota’s diverse, technology-driven advanced manufacturing sector is particularly strong in high-tech manufacturing, including computers and electronics, medical devices, and vehicles.
Additionally, Minnesota ranks among the top states for environmental friendliness and sustainability practices. The state has over 17,000 companies in a broad range of clean technology and renewable energy clusters focused on biofuels, water technology, and wind and solar power. Clean technology and renewable energy represent 8.7% of Minnesota’s GDP and more than 200,000 jobs.
Recent announcements from growing local and international manufacturers demonstrate Minnesota’s economic diversity around the state.
Early in October, Minneapolis-based Niron Magnetics, a manufacturer of rare earth-free permanent magnets, announced that it is entering into a 79-acre purchase agreement to build a new 150,000-square-foot manufacturing facility in Sartell, a town of nearly 20,000 in central Minnesota. Niron’s magnets are used in electric vehicle motors, wind turbines and other green technology, and the new plant will manufacture the company’s rare earth-free magnets. Days later, the company announced the grand opening of a first-of-its-kind commercial pilot plant in Minneapolis, where it will test its manufacturing methods for these alternatives to rare earth permanent magnets.
In August 2024, State of Minnesota officials had another major investment to share. Italy-based papermaker Sofidel announced a $200 million investment in its manufacturing facilities in Duluth. With financing support from the state, Sofidel plans to add a new conversion facility, an automated warehouse, and 160 new jobs in the region.
What convinced these companies to invest in Minnesota?
A highly educated workforce experienced in manufacturing helps — Minnesota is ranked the #2 state for workers in medical device manufacturing and in the top 10 states for educational attainment. Plus, business-friendly partners in communities and at DEED helped the companies find appropriate financing and incentive opportunities and navigate site selection. In a press release, Niron CEO Jonathan Rowntree stated, “The community has built a welcoming environment for both our business and our future employees, making it the perfect location for Niron to put down our roots and expand into our next phase.”
Discover why Minnesota is a top place for business at ExploreMinnesota.com/Business.
