BOARD ACTION: 11 Awards to Create New Jobs and $155M in Capital Investment
- Release Date: Thursday, March 20, 2008
- Dateline (city): Des Moines
- Contact: Shawn Rolland, IDED Public Information Officer, 515.242.4805
- Attachment:
Economic Growth Expected in the Amanas, Burlington, Cedar Rapids, Davenport, Dubuque, Johnston, Knoxville, Oelwein, Steamboat Rock, Strawberry Point and West Des Moines
March 20, 2008 (Des Moines, Iowa) – Innovative companies in renewable energy, advanced manufacturing, bioprocessing and financial services received job creation awards today from the Economic Development Board and the Iowa Department of Economic Development (IDED). The 11 awards are expected to create 613 jobs and retain an additional 330 jobs, while spurring investments of nearly $155 million.
“It is clear Iowa’s economy is strong and growing stronger,” said Governor Chet Culver. “This announcement of these 11 economic stimulus awards is one more example of our state’s steadfast commitment to creating quality jobs and new opportunities in Iowa. The Culver/Judge Administration will continue to do the hard work of aggressively recruiting and retaining employers, and building a brighter, stronger future for Iowa.”
“High-quality companies are choosing Iowa because our state is a smart and affordable place to do business,” said IDED Director Mike Tramontina. “From renewable energy to exports to employment, Iowa’s economy is outpacing the nation. With these 11 stimulus awards, we will create more than 600 new jobs and over $150 million in new investment in communities across the state.”
Oelwein to manufacture wind power components
Sector 5 Technologies Inc. is purchasing the former Donaldson plant from the city of Oelwein to serve as its headquarters and manufacturing site for very large, complex components used by the wind power industry. Dale Feauto, former President of Modern Engineering & Piping, is starting the company and scaling up fabrication and assembly of the wind turbine components for Clipper Windpower, Acciona and other companies. The nearly $3 million investment is expected to create 99 jobs, 98 of the jobs paying an average wage of $23.89 per hour. The Economic Development Board awarded the new company $297,000 from Community Economic Betterment Account (CEBA) to begin operations in the 161,000 sq. ft. building. Enterprise Zone tax benefits were also awarded. Sector 5 is planning future diversification into components for the biofuels, food and pharmaceutical industries.
New technology retains jobs in Burlington
Federal-Mogul Corporation has designed a new Champion spark plug and wants to install new manufacturing technology to produce it at the Burlington plant. The company is proposing a $7 million upgrade of the Burlington plant, which currently produces 450,000 various spark plugs per day. To secure the upgrade for Burlington, the Economic Development Board awarded $500,000 from the Community Economic Betterment Account (CEBA). The project would retain 330 jobs, 152 of the qualifying jobs pay an average wage of $18.18 per hour. Tax benefits from the Targeted Jobs Withholding Tax Credit program were also announced. Federal-Mogul is positioning for new and replacement business for the Burlington facility with the new technology.
Two Deere expansions in Johnston
John Deere Credit Services is planning to invest $31 million to construct a new facility for expansion at its worldwide headquarters and operations campus in Johnston. The Economic Development Board awarded Deere Credit tax benefits from the High Quality Jobs Creation (HQJC) program to create 92 jobs paying an average wage of $32.87 per hour. Deere Credit is one of the largest equipment finance companies in the U.S., facilitating the sale of John Deere agricultural and construction equipment as well as doing other financing.
The new facility will have additional space that Deere Credit intends to rent to its affiliated crop insurance company, John Deere Risk Protection (JDRP), for expansion. The Board awarded the JDRP expansion tax benefits from the High Quality Jobs Creation (HQJC) program to create 25 jobs, 23 of the qualifying jobs paying an average hourly wage of $27.09 per hour.
Hot product drives Dubuque investment
Construction is scheduled to begin in May on the new Hormel Foods plant in Dubuque, a 327,000 square foot manufacturing facility where 196 jobs are expected to be created to meet the increased market demand for microwaveable meals. The Economic Development Board today awarded the project tax benefits from the High Quality Jobs Creation (HQJC) program for 21 of the jobs that pay an average wage of $28.57 per hour. Initially the $91 million plant will have two production lines with the capacity for further expansion. Headquartered in Austin, Minn., Hormel Foods has locations in Algona, Bondurant, Eldridge, Fort Dodge, Knoxville, Mitchellville, Nevada and Osceola.
Knoxville to develop medical imaging
Verista Imaging Inc. plans to relocate from Castana to Knoxville where it will acquire and renovate larger, 15,000 sq. ft. premises for the assembly of medical imaging devices. Verista has acquired patent rights to coded aperture imaging technology from the Massachusetts Institute of Technology (MIT) and is developing other new imaging technologies. Verista expects to create 55 jobs over the next three years as it brings next generation products to market for medical practitioners. The company was awarded $216,000 from the Community Economic Betterment Account (CEBA) and tax benefits from the High Quality Jobs Creation (HQJC) program. Fifty-four of the qualifying jobs pay an average wage of $21.46 per hour.
Big insurance plans in West Des Moines
Employee-owned company succeeds in Davenport Horizon Group of Davenport manufactures wood cabinets and other casework for commercial and public buildings. The advanced manufacturer is proposing to build a 12,000 sq. ft. addition and purchase new equipment to expand production. The $1 million project to begin this spring is expected to create 11 jobs, six of the jobs paying an average wage of $17.88 per hour. The Economic Development Board awarded Horizon a $350,000 float (temporary) loan from the Community Economic Betterment Account (CEBA). Tax benefits from the High Quality Jobs Creation (HQJC) program are also part of the expansion. Horizon is 50 percent employee owned and will be entirely employee owned in February 2009.
Danish investment in Cedar Rapids Hamlet Protein, a Danish bioprocessing company, is proposing to build a 30,000 sq. ft. plant and warehouse to produce animal nutrition products in Cedar Rapids. The Economic Development Board awarded the project $75,000 from the Value-Added Agricultural Products and Processes Financial Assistance Program (VAAPFAP) to proceed with the $17 million capital investment. Hamlet is expected to create 29 jobs paying an average wage of $24.03 per hour. Enterprise Zone tax benefits were also announced. Construction would begin later this year and the plant would be operational in 2009. Hamlet’s products will be exported to Central and South America, Canada and Asia, as well as sold for animal feed in Iowa.
Steamboat Rock recruiting manufacturer Enterprise Zone tax benefits were awarded to Natural Recycled Proteins (NRP), which is considering expansion at its Nebraska plant or building a new $5 million plant in Steamboat Rock, Iowa. The 27,000 square foot facility would process nonproductive, spent hens from egg production into a high protein mixture for use in dog and other pet foods. NRP expects to create 15 jobs paying an average wage of $15.38 per hour. Construction would begin this spring and the plant would be operation by the close of this year.
Strawberry Point grows manufacturing Development Resources of Iowa plans to double the size of their production facility in Strawberry Point. A 10,000 sq. ft. addition and new equipment will increase production of livestock curtains used to control the inside environments of livestock buildings. The expansion to begin in May is expected to create 13 jobs paying an average wage of $13.15 per hour. The Company was awarded $60,000 from the Economic Development Set-Aside (EDSA) program and Enterprise Zone Tax Benefits to expand and create jobs.
Insurance broker and wholesaler TNE Holdings LLC is relocating to a new building in West Des Moines with more space for expansion and employees as it continues to grow into a larger regional company. To assist TNE Holdings’ job creation, the Economic Development Board awarded $185,000 from the Community Economic Betterment Account (CEBA). Tax benefits were also announced from the High Quality Jobs Creation (HQJC) program. TNE Holdings plans to create 45 jobs, 37 of the jobs paying an average wage of $32.15 per hour.