Apache planning Texas facility

Apache, an employee-owned Cedar Rapids company, is planning a new distribution and production facility in Dallas.

Apache fabricates and distributes hose, belting, cut and molded rubber, and industrial consumer products for domestic and international customers. The company expects to open a 20,000-square-foot plant in Dallas by the end of August that will have heavy duty and lightweight belting, in addition to hose products and cut and molded parts.

'Today we are heavily concentrated in the Midwest, and this will allow us to more effectively and efficiently reach our customers in the southern states,” Tom Pientok, Apache president and CEO, said in a news release.

'We know lead time is important, and an enhanced logistics model allows us to help our customers better serve their customers.”

Apache in May broke ground for a $7.3 million, 90,000-square-foot addition that almost will double its manufacturing and warehousing capacity.

Kyle Gingrich, Apache vice president of operations, said the new addition will allow the company to rearrange material and work flow to improve manufacturing efficiency.

The Cedar Rapids City Council approved a property tax break for the project, which will allow Apache to forgo 64 percent of the property taxes on the company's investment over 10 years. That will equate to an estimated savings of $683,702. During the 10 years after the incentive expires, Apache's expansion is expected to generate $1 million in new property tax revenue.