Gov. Tim Walz announced Wednesday that the state will support Solventum’s $209 million expansion to Eagan with up to $13 million in financial assistance through the Minnesota Department of Employment and Economic Development.

Solventum, a recent spin-off of Maplewood-based 3M, plans to relocate its Minnesota-based operations from Maplewood to a former Blue Cross and Blue Shield building in the Dakota County suburb. The global health care company will keep an estimated 2,000 jobs within the state, including about 1,100 at its new “state of the art” research and development facility, according to the governor’s office.

Some observers have bemoaned the loss of a major employer in Ramsey County while also breathing relief that the corporation — which is expected to list as a new Fortune 500 company when rankings are published next year — has chosen to stay in Minnesota and won’t be moving far. The company employs some 20,000 workers in 300 offices worldwide.

“Solventum’s expansion reinforces Minnesota’s track record as a globally recognized leader in manufacturing, health care innovation, and medical technology,” said Walz, in a written statement. “We’ve worked with Solventum every step of the way on this announcement, retaining thousands of high-paying jobs and expanding opportunities for innovation, ensuring Minnesota remains the best state in the nation for health care.”

Project costs include property acquisition, major renovations and significant machinery, equipment, and technology investments, according to Minnesota DEED. Solventum expects to be situated in its new location by early 2026.

Solventum will receive economic development awards from DEED’s Job Creation Fund, which provides financial incentives to new and expanding businesses that meet job creation and capital investment targets, and the Minnesota Investment Fund, which provides financing to help add new workers and retain high-quality jobs.

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