Good news from the Iowa Department of Economic Development yesterday…
Positive signals in the Iowa economy
State development pursues expansion plans
December 18, 2008 (Des Moines, Iowa) – Advanced manufacturing and technology companies are planning significant expansions during the next year that would create and retain 383 jobs and invest nearly $60 million in the Iowa economy. The seven projects were approved for economic stimulus programs by the Economic Development Board and the Iowa Department of Economic Development (IDED) for Allerton, Cedar Rapids, Fairfield, Grinnell, Oelwein, and Story City.
“As we move into a new year, we are aggressively working with a broad range of companies with the potential to provide exciting career opportunities for the people of Iowa. We expect a promising future to grow from these ongoing initiatives,” said IDED Director Michael Tramontina.
Food ingredient expansions in Allerton and Grinnell
A nearly $18 million expansion is under review in the Wayne county community of Allerton by DairiConcepts, L.P. that would create 18 jobs and retain 43 jobs. The food ingredient manufacturer was awarded $350,000 from the Community Economic Betterment Account (CEBA) and tax benefits to create jobs and invest in an Enterprise Zone. DairiConcepts would produce a new dairy based product that requires plant construction and remodeling, as well as new machinery and equipment.
Pulmuone Wildwood may double the size of its Grinnell plant to expand the production of soy food products from organic soybeans, creating and retaining 42 jobs. The company would purchase another food company and relocate that production to Grinnell, making a capital investment of nearly $4 million in facilities and processing equipment. The proposal was awarded $175,000 from the Value-Added Agricultural Products and Processes Financial Assistance Program (VAAPFAP) to create 15 of the jobs and retain 3 jobs. The expansion was also approved for High Quality Jobs Creation (HQJC) tax benefits.
Energy manufacturing coming to Story City
Generation Repair and Service (GRS), a new business, has selected Story City for constructions next year of an $18 million gearbox overhaul and repair facility. GRS was awarded $115,000 from the Community Economic Betterment Account (CEBA) to create 23 jobs and $300,000 from the Physical Infrastructure Assistance Program (PIAP) for site preparation. The proposed location was also awarded tax benefits from the High Quality Jobs Creation (HQJC) program.
Oelwein competes for two manufacturers
Indiana-based Ashley Industrial Molding (AIM) may refit a vacant plant in Oelwein to produce molded composite parts and assemblies for industrial and agricultural equipment. The new Iowa operation would create 125 jobs and invest $14.6 million to convert the former Triangle plastics plant for new production. AIM was awarded $625,000 from the Community Economic Betterment Account (CEBA) and tax benefits to bring the operation to an Iowa Enterprise Zone. The company would install large compression molding presses, a state-of-the-art paint line, and associated assembly equipment to make parts and assemblies for other manufacturers.
Abraxis BioScience is considering Oelwein and cities in other states for a modern facility to process porcine and bovine materials into commercial grade pharmaceutical products. To assist Oelwein in getting the new plant, the Economic Development Board approved an investment of $400,000 from the Value-Added Agricultural Products and Processes Financial Assistance Program (VAAPFAP). The new plant would create 47 jobs after it begins operations in the second quarter of 2009. Enterprise Zone tax benefits have also been extended to Abraxis to bring the new operation to Iowa.
Start-up technology thrives in Cedar Rapids
Over the next year Ovation Networks, Inc. of Cedar Rapids expects to roll out a new energy management product that uses wireless technology to save energy use in hotel rooms. Ovation expects to hire 63 people to aggressively deploy the new product to over 650 existing customers in 43 states that use Ovation’s hotel internet and surveillance systems. The new company was awarded $125,000 to be repaid from a royalty on sales and $25,000 in technical assistance, both awards from the Entrepreneurial Ventures Assistance (EVA) program, to create 40 of the jobs.
Renowned Fairfield firm expects uptick
Creative Edge Mastershop, Inc., the Fairfield firm that produces spectacular architectural designs for commercial building floors and walls, is expanding and upgrading its water jet cutting technologies to handle growth in national and international business. Creative Edge was awarded $75,000 from the Community Economic Betterment Account (CEBA) to create 15 jobs that are part of its expansion and will receive tax benefits from the High Quality Jobs Creation (HQJC) program.
