State approves tax benefits for Diamond V expansion in Cedar Rapids

$30 million expansion will add manufacturing capabilities for two lines

George Ford
Published: February 22 2014 | 7:00 am - Updated: 29 March 2014 | 4:00 am in
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A $30 million expansion of the Diamond V Mills nutritional products plant in southwest Cedar Rapids was approved for tax benefits Friday by the Iowa Economic Development Authority Board.

Diamond V plans to add 56,000 square feet to its manufacturing facilities at 2525 60th Ave. SW to meet increasing global demand.  The physical expansion will add manufacturing capabilities for two primary product lines.

Diamond V, which employs more than 100 people in Cedar Rapids, said the expansion is expected to create 17 jobs.  Construction will begin in May, with completion projected to require more than two years.

Diamond V said its fermentation products have experienced substantial sales growth in recent years averaging approximately 20 percent annually over the last three years. The company attributes part of the sales increase to adoption of its products by the nation's poultry industry to reduce salmonella contamination.

The second part of the expansion will involve installation of new manufacturing capabilities to produce a newly developed fermentation product that substantially impacts the health of animals. To produce this product, Diamond V will add storage, spray drying, grinding, bagging and transportation equipment.

Diamond V completed construction of the $26 million plant in 2009 and added a $4.5 million headquarters and $12.5 million production expansion in 2012.

The family-owned company, founded in 1943, provides nutritional products that optimize digestive function and nutrition critical to animal and aqua health, productivity, efficiency and profitability.

Also on Friday, the IEDA Board approved $336,600 in direct financial assistance as well as tax benefits for a $2.1 million project in Dubuque that would create 48 jobs.

Rockfarm Holdings is a group of companies offering transportation management services. The company, based in East Dubuque, Ill., has exhausted the available office space due to business growth and is evaluating a corporate facility in Dubuque’s Technology Park.

 

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