An $85 million egg processing facility will be built at Norwalk in central Iowa. Michael Foods Egg Products Co. plans to begin construction this summer and hopes to have its plant operational by late 2019.
The Iowa Economic Development Authority board in mid-February unanimously approved $4 million in state financial incentives toward the 143,000-square-foot facility, which will process eggs and precooked egg products. The city of Norwalk is providing $10 million in local taxpayer incentives.
Michael Foods, a subsidiary of Post Holdings Inc., of Minnetonka, Minn., is known for consumer brands like Crystal Farm, Better’n Eggs, Allwhites liquid eggs and Simply Potatoes. Company officials say they chose Norwalk for its quality of life and proximity to the company’s supply chain. Iowa is the nation’s leading egg producer.
The plant promises to create 168 new jobs, and 17 of those positions received a state incentive and must pay at least $24.38 per hour. The state economic development authority awarded $3.4 million in investment tax credits to the company and $492,450 in tax refunds.
Norwalk has a new bulk water user rate to keep costs down, and the City Council approved a 20-year, 65% tax increment financing rebate worth about $9.7 million. The city also awarded a $73,000 grant.
“We looked at numerous locations in the Midwest, and Norwalk has many advantages,” says Steve Schonhoff, vice president of Michael Foods. “We look forward to becoming a preferred employer in the area and being part of the community.”
Source: Michael Foods Egg Products Co.
ADM to invest $200M in Iowa grain processing plant
Archer Daniel Midland will spend nearly $200 million to update its large grain processing facility at Clinton, along the Mississippi River in eastern Iowa. The firm plans to revamp the early-1900s era wet mill facility it bought in 1982.
ADM will spend about $196 million to remodel the mill including $146 million for machinery and equipment and $39 million in building construction costs.
The Iowa Economic Development Authority board approved $8.2 million in economic incentives for the project, including $7 million in investment tax credits and $1.3 million in tax refunds. Clinton must match the state award with a five-year tax abatement. ADM has agreed to retain 42 jobs that pay at least $15.99 per hour. The plant employs about 775 people. State officials don’t expect large job losses.
ADM’s mill processes corn to be made into sweeteners, starches, ethanol and bioproducts, such as dextrose, high-fructose corn syrup, gluten meal and gluten feed. The equipment in the mill has reached the end of its useful life and is installed in many of the original plant structures.
Source: Iowa Economic Development Authority