Cargill’s Diamond V to return Iowa state tax credits, CPM and IFF expand production in that US state
The Iowa Economic Development Authority (IEDA) board heard from Cargill last week that it would not be able to meeting commitments made on staffing levels the plant of one of its subsidiaries, animal nutrition supplier, Diamond V.
The board approved the tax credits in 2016 as Diamond V announced it would expand the unit in Cedar Rapids, by 100,000 square feet. It completed the project in January last year. The factory expansion was made on the back of growth Diamond V had tracked in major global markets.
But the contract with the economic development authority required Diamond V to increase the number of full-time employees at the plant to 145 from 129. The company needed to achieve that objective by the end of this month. The company, acquired by Cargill in 2018, created only three of 16 required jobs, according to the document sent to the IEDA.
Feed industry suppliers expanding in Iowa
Separately, in updates posted on the IEDA website, other animal nutrition and feed related projects are underway in Iowa.
Equipment manufacturer, CPM, is to expand its production footprint in Waterloo.
Established in 1883, CPM Acquisition Corporation is a leading supplier of process equipment and technology for the animal feed, oilseed, bioenergy, compounding, engineered materials and human food processing industries.
Located on 20 acres in Waterloo, the design-build-to-suit, leased facility will total approximately 140,000 square feet and support manufacturing, assembly, warehouse and a dedicated research and development facility.
The project represents a US$3m capital investment and is expected to create 14 jobs locally. The IEDA board awarded the project tax benefits.
IFF, a manufacturer of enzymes for biofuels production and also for the food and animal nutrition sectors, is planning to increase the size of its operations in Cedar Rapids by adding 20,000 square feet of space for both spray drying and fermentation linked processes.
The project represents a capital investment of just under US$44m and is expected to create eight jobs locally. The IEDA also granted it tax credits.