Iowa Economic Development Authority Approves assistance to Dutch manufacturer in Pella

The Iowa Economic Development Authority board approved financial assistance Friday for a Netherlands steel and aluminum company that plans to lease a facility in Pella.

Castle Metal Inc. is a subsidiary of Kasteel Metaal B.V. Kasteel Metaal's primary products include industrial washing machines, vending machines for washing clothing, winches for offshore industry, speed gates for parking garages, cylinder entrances and stainless steel parts for milking robots, according to the company's background as listed in the July IEDA board packet.

The board agreed to give the company $200,000 in direct financial assistance as well as tax benefits for the $3.2 million capital investment project, said Tina Hoffman, the authority's marketing and communications director. The investment is expected to create 26 jobs.

Castle Metal plans to lease a 40,000-square-foot existing facility in Pella to conduct its specialty steel working operations. Renovation to the existing space will include construction of new walls, improvements to the foundation and installation of heating, cooling and ventilation systems.

The Pella operations will focus on steel working, including stainless steel and aluminum. Specialties will be laser cutting, automatic bending and robot welding, and steel parts for milking robots will be the company's main focus.

According to the project description in the July board agenda, the machinery and equipment will be installed by the end of the year, with full-scale production being reached by the middle of next year.

The board also awarded a $10,000 grant, through 16 project funds, to Coralville-based Kamath Biosciences LLC, a new fitness beverage manufacturer that supplies product under the brand Cardiostrong.

The grant is to increase production of its current product, expand product portfolio and increase its marketing, the authority said in a news release.