TIPTON — DelGrosso Foods Inc. announced plans Monday for a $60 million expansion project which will lead to the creation of about 50 new jobs over the next three years.

DelGrosso Foods was awarded $1.5 million from the commonwealth of Pennsylvania to help with the project. The Redevelopment Assistance Capital Program is designed to assist with acquisition and construction of regional economic, cultural, civic, recreational and historical improvement projects.

DelGrosso Foods applied for the grant program to aid in the redevelopment of the Kristel Lane Building that the company purchased in March 2019. The addition of that facility provides the company with much-needed space for expanded warehousing and future food manufacturing capabilities.

DelGrosso Foods, the oldest major family-owned producer of pasta sauce in America, has experienced substantial growth in the past decade and requires more space for its operations.

Because the RACP guidelines specify how grants may be used, DelGrosso Foods will use the funding to help reduce the overall costs of repurposing the building for warehousing and food production.

“We’ve made numerous additions to our existing Tipton sauce plant over the decades, adding warehousing space and expanded production capacity where we could,” said Joe DelGrosso, CEO and a second-generation family member in a statement. “In order to continue to grow, our only option at this point is to add a second facility. It’s the largest step in the history of the family business since my parents packed those first cans of sauce over 70 years ago.”

Michael DelGrosso, chief sales and marketing officer and third-generation family member, said that expanded sales have fueled company growth.

“We have a highly dedicated, world-class workforce right here in Blair County that produces DelGrosso branded products for distribution nationally and internationally, packs private label (store brand) products for half of the top 20 grocers in America and produces sauce or salsa for several national brands. We are excited for this next step,” he said in a statement.

DelGrosso’s expansion is among the largest single business expansions ever in Blair County, said Stephen McKnight, president and CEO of the Altoona-Blair County Development Corp.

“Locally born and rooted family businesses are the backbone of our economy,” McKnight said in a statement. “We are grateful for DelGrosso’s continued investment and job creation impact and appreciate the support of our state and local officials in critical projects like this.”

DelGrosso Foods worked with the Governor’s Action Team, ABCD Corp., state Sen. Judy Ward and state Rep. Jim Gregory for the grant process.

In addition to the $1.5 million from the RACP, DelGrossos also received funding from the Department of Community and Economic Development for a $166,800 workforce development grant through the WEDnet program to help the company train workers and was encouraged to apply for the department’s Manufacturing Tax Credit program.

Loan assistance for the project is being funded by First Commonwealth Bank, ABCD Corp. and Southern Alleghenies Planning & Development Commission.