Diamond V, a Cedar Rapids producer and marketer of animal nutrition products, is planning a $30 million expansion of its plant at 2525 60th Ave. SW to increase manufacturing capacity.
The privately-owned company, founded in 1943, wants to add about 56,000 square feet and create 17 jobs. The Cedar Rapids City Council on Tuesday will consider sponsoring a state financial assistance application for the project that would primarily involve investment tax credits.
The Cedar Rapids Metro Economic Alliance assisted in preparation of Diamond V's application, which will be sent to the Iowa Economic Development Authority for consideration.
Diamond V, which employs more than 100 people in Cedar Rapids, wants to begin construction in May, with completion expected to require more than two years. The physical expansion will add manufacturing capabilities for two primary product lines.
Diamond V said its fermentation products have experienced substantial sales growth in the 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.For many years, Diamond V Mills headquarters was located at 838 First St. NW, but proximity to the Cedar River resulted in serious damage from the 2008 flood. Although the company rehabilitated and reoccupied the building, lack of any near term flood protection for the west side of the river prompted the move to higher ground.