10/04/2025
Chaska is home to a factory that has survived decades of change in the Minnesota sugar industry. Since 1934 it has been part of the American Crystal Sugar Company, one of the leading sugar producers in the United States.
In 1898, Minnesota’s first sugar-beet factory opened in St. Louis Park. In 1905, that factory burned to the ground. In September of that year it was announced that Chaska had been chosen as the location of the new Carver County Sugar Company.
Construction on the factory and the railroad tracks associated with it began in November of 1905. The factory opened on October 18, 1906. The main building, made out of Chaska brick, was four stories tall. The adjacent warehouse was three stories. There were also smokestacks, a boiler house, and beet sheds capable of holding fifteen thousand tons of beets. The factory employed 150 workers who worked twelve-hour shifts. After the beets were processed, the pulp was sold as feed for livestock.
In 1911, the company’s name was changed to the Minnesota Sugar Company. A boarding house for seasonal workers was also built. The house included eight separate apartments with Pullman sleepers, a large dining area, a washroom, and a lounge area.
By 1915, the factory employed 250 men. It produced over 125,000 bags of crystallized sugar that year as well as sixty thousand pounds of dry beet pulp and two thousand tons of molasses. Lime for fertilizing was also produced.
In 1924, a company called American Beet bought the Minnesota Sugar Company and its plants, including the Chaska factory. During the Depression, however, American Beet’s fortunes changed. In 1931, the average price of sugar dropped from seven cents per pound to one half-cent per pound. The Sugar Act of 1934 was enacted in response to these problems.
In 1939, more railroad tracks were laid and updated equipment was added. That same year, a large neon sign was installed advertising the company’s new name.
In 1944, disaster struck the warehouse. When approximately 1,500 one-hundred-pound bags of sugar were stacked against a thirteen-inch wall, the weight and pressure proved too much. The wall collapsed, destroying the sugar.
In 1957, American Crystal sold seventeen acres of land to the M. A. Gedney Company. On Easter Sunday of 1958, sleet and wind knocked down a power line during a storm, causing the motors in the warehouse fans to overheat and burn. The fireproof construction of the building helped contain the fire to a 60-by-225-foot area.
In 1971, the Chaska factory ceased production. The main reason was a failure to meet pollution control standards. In February of 1974, the smokestacks were torn down, beginning the dismantling of the factory. As of 2025, American Crystal uses the site as a storage and distribution center.
