Diamond V on Friday announced plans for a $28 million expansion of its manufacturing complex in southwest Cedar Rapids to support increased production of natural nutritional health products for animals.
Construction is expected to start later this month on a second 97,800-square-foot facility at 2575 60th Ave. SW. Completion is projected for June 30, 2018.
Diamond V, a privately-owned company, said the expansion is contingent on regulatory approval and governmental approval of financial assistance. It will add manufacturing capabilities, including storage, fermentation, drying, grinding, packaging and transportation equipment.
The capital investment also will add 16 jobs in manufacturing, research and development, marketing, accounting, and information technology.
Dave Lusson, Diamond V executive vice president, said in a news release that the company has experienced roughly 20 percent annual growth over the last five years.
“With this expansion project, we will be able to continue the growth of our nutritional health products globally, including the adoption of our technology by the U.S. poultry, swine, beef and dairy industries,” Lusson said.
The Cedar Rapids City Council on Tuesday is expected to consider economic development assistance as well as sponsorship of a state financial assistance application for the project. State financial assistance would be primarily in the form of property tax relief for the new facility.
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The Cedar Rapids Metro Economic Alliance assisted in preparation of the state application that was sent to the Iowa Economic Development Authority in August.
The Cedar Rapids Planning Commission last month gave preliminary site plan approval for the new building, which will be constructed just south of the company’s existing 134,380-square-foot building on the 31-acre site.
The Diamond V project will include two detention basins to control stormwater and 22 parking spaces. Due to the building’s height — 92 feet — and proximity to The Eastern Iowa Airport, the project also will need approval from the Federal Aviation Administration.