The Iowa Economic Development Authority (IEDA) Board approved the first awards today for the state’s new Business Incentives for Growth or BIG program.
Department of Economic Development spokesperson Kanan Kappelman says projects Bettendorf, Bondurant, Hiawatha, Vinton and Waverly are getting awards. “In total, the awards for these five companies will assist in the creation of 536 jobs and will result in close to $270 million in new capital investment for the state,” she says.
Kappelman says they companies can use the money in several different ways. “Projects that modernize their facilities, include expansions, relocation of operations to Iowa. So it runs the gamut, but they need to fulfill their contractual obligations in order to receive the tax benefits,” she says.
She says some of the companies that have been in Iowa for decades. “And these companies include, of course, Arconic and Vermeer, truly legacy companies and we see their expansion projects are definitely a very positive reflection of Iowa’s advanced manufacturing industry,” Kappelman says.
Arconic is going to build a new aluminum casting complex at its Davenport Works facility in Bettendorf, increasing its capacity to process and recycle aluminum into ingots used to make sheet and plate products. The $131 million capital investment is expected to create 40 jobs. Vermeer Corp. to build new production facility in Bondurant. Vermeer is based in Pella and makes agricultural and industrial equipment and plans to develop a 300,000 production facility in Bondurant. The nearly $103 million capital investment is expected to create 182 jobs. CCB Packaging in Hiawatha plans to add automated production line for packaging it provides to food and pharmaceutical companies. The $13 million capital investment is expected to create nine jobs.
Two companies are receiving awards to bring business to Iowa. “Sewer and Revolution Concrete Mixers, are companies that are seeking new investment in Iowa. And so it’s really a great mix of companies,” she says. Sewer Equipment Company of America in Illinois plans to purchase a facility in Iowa to manufacture its sewer cleaning and vacuum equipment components. The $3 million dollar capital investment is expected to create 30 jobs.
Revolution Concrete Mixers in Minnesota will purchase an existing facility in Waverly and install approximately eight million dollars in equipment to establish new production and assembly operations. The $18 million capital investment is expected to create 275 jobs.
Kappelman says many of the new jobs in the program will be paying top dollar. That includes Arconic, which is set to create 40 jobs with a qualifying wage of $28.46 an per hour. Vermeer is looking to create jobs 182 — with 62 of them at a qualifying wage of $35.11 an hour.