Ground breaking set for Oelwein plant

Excavation work has begun on a $68 million battery manufacturing plant, distribution center and warehouse in Oelwein.

East Penn Manufacturing of Lyon Station, Pa., on June 28 will mark the beginning of construction of a 318,600-square-foot facility with a groundbreaking ceremony.

The new plant, which will create 350 jobs with an average wage of $17 per hour, will be built on Industrial Drive near the RAMS Center in the Oelwein Industrial Park.

For eight yeasr, East Penn has operated a distribution center at 301 Fifth Ave. SW in Oelwein that employs about 80. The new facility will include auxiliary equipment buildings, a fleet service building, and personnel offices.

The Iowa Economic Development Authority Board in August 2015 awarded the project $1.75 million in direct financial assistance as well as $3.1 million in tax benefits through the state's High Quality Jobs program. It will require changes in road access, water, natural gas, communication and electrical upgrades to satisfy electrical demand.

In a statement, East Penn said it is opening the new facility in Oelwein as a strategic location to better reach its customers in the western United States and other key points across North America.

East Penn will be the largest employer in Oelwein when the project is completed and fully staffed. Completion of the facility, just east of Iowa Highway 150 on the southern edge of the community, is projected for the end of 2017.

East Penn, which employs about 6,700 nationwide, has been producing batteries and battery accessories since 1946 for the agricultural, automotive, commercial, marine, industrial, stationary and specialty markets.