COVINGTON – A health drink plant expanding to produce ice cream and other frozen treats might seem contrary to diets but not in Covington.

Such a development could prove to be quite nourishing in the county seat of Tipton County, which has a double-digit unemployment rate.

As state officials announced Monday, Unilever will expand the production line of its Slim-Fast plant off U.S. 51 to include the global consumer goods conglomerate’s ice cream and frozen novelty brands such as Breyers, Klondike, Good Humor and Popsicle. It is a projected investment of $100 million that will add 275 jobs. The plant currently employs 163 people.

Covington Mayor David Gordon welcomed the announcement, noting the area has lost 600 to 650 jobs in recent months.

“(Unilever’s expansion) could put almost half of those people back to work,” Gordon said.

One example of the area’s losses came in December with the announcement that the area’s AbitibiBowater plant would close after North America’s largest newsprint maker filed for bankruptcy protection. That closure alone cost 81 jobs.

Tipton County recorded a 12 percent unemployment rate in August. Though down slightly from 12.4 percent in July, it’s still up sharply from 7.8 percent in August 2008, making it one of the highest unemployment rates in Tennessee. The state average is 10.8 percent; Lauderdale County, Tipton’s neighbor to the north, has an unemployment rate of 19.7 percent.

“So, jobs are good,” Gordon said.

Beyond confirming the announcement, Unilever officials are declining further comment about the expansion since plans are not 100 percent finalized. If all goes according to plan, construction is set to begin on the Covington facility during the first quarter of 2010.

It will be the latest addition to the facility, which was built in 1996 by Land O’Lakes, a co-packer for Slim-Fast. At that time, it was 400,000 square feet. An additional 280,000 square feet were added two years later when Slim-Fast Foods Co. assumed ownership of the facility.

Unilever acquired Slim-Fast for $2.3 billion in 2000 and relaunched the brand in 2006. The latest expansion at the Covington facility will include 32,000 square feet of freezer space.

Gordon said the city administration entered talks about the expansion in mid- to late July.

In a statement, Gov. Phil Bredesen and Matt Kisber, commissioner of the state Department of Economic and Community Development, lauded the expansion.

“This is great news for Unilever and the state of Tennessee,” Bredesen said. “These new jobs are the result of a strong partnership between the state and the local community. I’m pleased Unilever has chosen to further solidify its presence in Tennessee and we look forward to working with them on this ambitious expansion project.”

Kisber added, “Unilever’s decision to expand its Covington facility in Tipton County speaks to the high quality of the area work force.”