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

Solventum, a recent spinoff from Maplewood-based 3M, plans to move its Minnesota-based operations from Maplewood to a former Blue Cross and Blue Shield building in suburban Dakota County. The global health care company will retain about 2,000 jobs in the state, including about 1,100 at its new “state-of-the-art” research and development center, according to the governor’s office.

Some observers lamented the loss of a major employer in Ramsey County, while being relieved that the company — which is expected to be on the list of new Fortune 500 companies when the rankings are released next year — chose to stay in Minnesota and won’t. go far. The company employs some 20,000 people in 300 offices around the world.

“Solventum’s expansion strengthens Minnesota’s track record as a globally recognized leader in manufacturing, healthcare innovation and medical technology,” Walz said in a written statement. “We have worked with Solventum every step of the way through this announcement, retaining thousands of good-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 investments in machinery, equipment and technology, according to Minnesota DEED. Solventum should be installed on its new site 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 their job creation and capital investment goals, and the Investment Fund of Minnesota, which provides funding to help recruit new workers and retain high-quality jobs. .