Business projects in five Iowa cities were awarded financial assistance and tax benefits today by the Iowa Economic Development Authority (IEDA) Board.
The projects in Johnston, Sioux City, Davenport, Dubuque, and Spencer are expected to create a combined 238 jobs, retain 26 jobs, and result in over $81 million in new capital investment.
IEDA spokesperson Tina Hoffman says the biggest project involves an expansion by DuPont Pioneer in Johnston. “It will be a $28 million capital investment and will create 105 jobs,” Hoffman says. The IEDA Board awarded the company a tax benefits package.
Echo Electric of Sioux City, which mainly supplies products to electrical contractors, will also receive tax benefits. Hoffman says the company plans to build a distribution facility with office space in Sioux City. The expansion is expected to create 13 jobs and retain 24 jobs.
The IEDA Board awarded Progressive Processing, which operates a plant in Dubuque, with tax benefits and $240,000 in direct financial assistance. The subsidiary of Hormel Foods plans to add capacity to manufacture two additional products in Dubuque. The project is expected to create 91 new jobs.
Davenport-based manufacturer Genesis Systems Group was awarded tax benefits for the purchase of a building, machinery, and equipment. That expansion project is set to create nine jobs.
Hoffman says two projects impacting the town of Spencer will receive help from the IEDA. Both projects involve tax benefits to Shine Brothers Corporation, which specializes in wire chopping, auto shredding, and recycling scrap metal. The projects are expect to create a combined 20 new jobs.
November 22, 2013 (DES MOINES, IA) – The Iowa Economic Development Authority (IEDA) board today awarded direct financial assistance and tax benefits to six companies for job creation and expansion projects. Today’s awards will assist in the creation of 238 jobs and the retention of 26 jobs and will result in over $81 million in new capital investment for the state. The board also took action to support the growth of start-ups and small businesses in the state.
“Iowa companies remain bullish on our economy,” said IEDA Director Debi Durham. “Today’s existing industry expansions show that clearly. It is rewarded to see Iowa companies choosing to grow here.”
The board approved assistance for planned or proposed projects located in Johnston, Sioux City, Davenport, Dubuque, Spencer, Ames, Coralville and Des Moines.
DuPont Pioneer plans expansion in Johnston
DuPont Pioneer is the world’s leading producer and supplier of advanced plant genetics to farmers worldwide. The company develops, produces and markets a full line of top-quality seeds and provides agronomic services to customers in nearly 70 countries. The board awarded tax benefits to the company for expansion plans which include building improvements and the purchase of new technology and equipment at its Johnston facility. The $28 million capital investment is expected to create 105 jobs.
Sioux City company to expand operations
Echo Electric is a distributor/wholesaler of electric products with a customer base consisting mainly of electrical contractors. The company plans to build a distribution facility with office space in Sioux City. The board awarded the company benefits through the Targeted Jobs Withholding Tax Credit program for this $2.7 million capital investment that is set to create 13 jobs and retain 24 jobs, of which 18 are incented.
Davenport manufacturer plans to purchase building
Genesis Systems Group specializes in factory automation of robotic assembly and handling systems for welded, mechanical and adhesive assembly processes and machine tending applications. The Davenport-based manufacturer was awarded tax benefits for a $4 million capital investment comprised of purchasing a building, manufacturing machinery and equipment. The project is expected to create nine jobs and retain two jobs.
Progressive Processing, LLC receives financial assistance for expansion project
Progressive Processing, LLC, a wholly owned subsidiary of Hormel Foods Corporation, began operation in Dubuque in January 2010. The plant produces Hormel Compleates microwave meals and canned chunk chicken. The board awarded the company $240,000 in direct financial assistance as well as tax benefits to expand utilization of this facility by adding capacity to manufacture two additional products. The project is expected to create 91 jobs, of which 24 are incented.
Shine Brothers Corporation to build R&D facility
Shine Brothers Corporation is a family-owned and operated trading business that was founded in 1902 and based in Spencer. The company specializes in wire chopping and auto shredding. The company also purchases scrap metal throughout the U.S. from manufacturers and other recycling centers and sells end products to steel mills and foundries in the U.S. and abroad. Shine Bros. was awarded tax benefits for a $1.9 million capital investment project that includes building a research and development center to improve the quality and development of new products. The project is expected to create four jobs.
TJN Enterprises to construct new building
TJN Enterprises, a joint venture between Shine Bros Corp. of Spencer and Sioux City Compressed Steel of Sioux City, was formed in 1989. The company is located in Sioux Falls and manufactures/recycles ferrous and non-ferrous metals, purchases scrap throughout the Midwest from manufacturers, other recycling centers, and utilities; and sells end products to steel mills and foundries in the U.S. and abroad. The board awarded the company tax benefits for its plans to construct a new building and install processing equipment in Spencer. This project is expected to create 16 jobs.
Awards made to three start-ups
The Demonstration Fund provides financial and technical assistance to encourage high-technology prototype and concept development activities that have a clear potential to lead to commercially viable products or services within a reasonable period of time.
The fund provides up to $150,000 to encourage commercialization activities by small and medium-sized Iowa companies in the advanced manufacturing, biosciences and information technology industries. The primary purpose of the fund is to help businesses with a high-growth potential reach a position where they are able to attract later-stage, private-sector funding.
The Iowa Innovation Acceleration Fund promotes the formation and growth of businesses that engage in the transfer of technology into competitive, profitable companies that create high paying jobs. The funds are designed to support commercializing research, launching new start-ups and accelerating private investment and industrial expansion efforts that result in significant capital investment.
Award recommendations for both the Demonstration Fund and Iowa Innovation Acceleration Fund are made by the Technology and Commercialization Committee to the IEDA Board for approval.
Ames-based M&S FlowMatics, Inc. (dba FloMetrix) was established in 2011 to commercialize technology developed at Iowa State University (ISU). The company has transferred technology out of ISU and developed a metering instrument that is capable of calculating two tasks simultaneously, totalizing the weight of flowing granular material and calculating the speed of flow of granular materials. The company was awarded $200,000 loan via the Iowa innovation Acceleration Fund for IP development and evaluation, prototype design and equipment purchases.
Kamath Biosciences LLC is a new beverage manufacturer located in Coralville that provides innovative fitness beverages to the market under the brand name Cardiostrong. The beverage is a scientifically formulated performance and wellness drink that contains body performance enhancing supplements specifically designed to improve physical performance and improve cardiac health. The company was awarded $75,000 royalty through the Demonstration Fund for marketing purposes.
The ReWall Company produces a composite panel that recycles beverage cartons and cups in its manufacturing process. ReWall combines several properties in one board – the appearance of drywall, the durability of plywood, moisture and mold resistance, flexibility, and thermal and acoustic insulation. The final product is used in residential and commercial construction. The company, which is located in Des Moines, was awarded $30,000 from the Demonstration Fund for product testing and certification.