Office equipment manufacturer HNI Corp. is seeking $293,400 in tax benefits from the state’s Enterprise Zone Program for a $20.9 million expansion in Muscatine.
HNI, in its application to the Iowa Economic Development Authority, said the expansion project will provide increased capacity and capability in the manufacture of laminate and wood products. The Iowa Economic Development Authority Board is expected to act on the company’s request at Friday’s meeting in Des Moines.
The HNI expansion, which will be completely funded by the company, will take place on the existing HON Co. campus, with additional property acquisition. Construction is expected to begin in 2012 with equipment installation in phases and completion in 2015.
HNI, formerly HON Industries, is budgeting $500,000 for land acquisition, $4.5 million for construction of the new building and $14.7 million for machinery and equipment. The remainder of the $20.9 million cost of the project will be used for computer software, furniture and fixtures, research and development and job training.
HNI is the second-largest manufacturer of office furniture in the world and the leading supplier of K-12 education furniture in the United States. The company employs about 3,500 people in Iowa and approximately 9,500 worldwide.
Separately, the Iowa Economic Development Authority Board will consider approving an application for state financial assistance from MSI Mold Builders in Cedar Rapids for a $5.6 million expansion.
MSI Mold Builders plans to construct a 14,500-square-foot addition to its existing facility and install additional machinery and equipment to increase capacity and meet demand. The company is seeking a $72,000 forgivable loan, a five-year $72,000 loan at zero percent interest, and a tax credit of $42,727 under Iowa’s High Quality Jobs Program.
MSI Mold Builders will use $4.5 million of bank financing and the Linn County Board of Supervisors is providing $17,020 in property tax abatement over five years and a $28,800 grant as local match for the state funding.
MSI Mold Builders designs and builds various types of steel and aluminum molds for injection, structural foam, rim, blow, gas assist and structural web processes, in addition to aluminum limited production injection molds.
The company’s primary customers include the computer and business machine, medical diagnostics, material handling, sporting goods, lawn and garden, appliance consumer electronics, heavy equipment and transportation industries.