Jun 15, 2007 9:33 AM

Kraft Foods plans to lease 400,000 square feet of refrigerated warehouse space from Springfield Underground. Serving as a new regional distribution center, the space will permit the company to expand its Springfield MO plant and consolidate its five off-site storage operations in the area.

Expected to start operating in spring 2008, the new location should serve other Midwestern Kraft sites eventually, the company said.

Kraft said it selected Springfield Underground to help save energy, since the underground storage space likely will use two-thirds less energy than the aboveground plant.

The food producing company also intends to update manufacturing equipment and improve technology at the plant. This will allow Kraft to increase its production of processed cheese at the facility.