Rock Island oil distributor to move to Eldridge with help of state, local tax incentives

An Illinois-based oil lubricant distributor and industrial services company is relocating to Eldridge, taking with it an estimated 81 jobs.

And it's receiving a $135,000 tax credit from the Iowa Economic Development Authority to make the move — one of two projects the IEDA board approved incentives for Friday.

RILCO Inc., is planning to relocate its corporate headquarters from Moline to an existing building at 400 S. 14th Ave., Eldridge. In addition to distributing lubricants, RILCO has its own brand of lubricants, antifreeze and greases under Tec-Guard and Tec-Kool names.

The relocation is to include the office, administrative, and sales teams, as well as production operations, manufacturing and logistics, according to RILCO's application to the IEDA.

The $5.4 million project presented to the IEDA includes a 58,000-sqaure-foot expansion of the building in Eldridge, as well as "substantial warehouse and office improvements." New machinery, tank farms, equipment, and furniture also will be part of the project.

RILCO's current headquarters is at 3501 69th Ave., Moline, Ill. It also has a packaging facility at 2929 Fifth Ave., Rock Island, Ill., according to its website.

Improvements to the office and warehouse space would be completed by January 2024, according to the company's IEDA application, and the warehouse addition is set to be finished by July 2024.

The IEDA board awarded RILCO $135,000 in tax credits between 2023 and 2027 to make the move. The Eldridge city council has also considered a local economic incentive package in recent months.

GRT Eldridge Property, LLC, bought the property in December 2022 for $12 million, according to county property records.

M.H. Eby, Inc., a manufacturer of aluminum truck bodies and livestock haulers, also was awarded tax incentives by the IEDA Friday. The company plans to expand its Story City facility by 100,000 square feet. Its $15.3 million project is expected to create 120 jobs.

“The investments announced today are a testament that Iowa is a place of opportunity and economic vitality,” said Gov. Kim Reynolds in an emailed news release. “From being recognized as the nation’s most fiscally responsible state to the historic tax reform passed by our legislature, we have built a strong foundation where businesses in Iowa can thrive and prosper. I welcome RILCO to the state, congratulate both companies for their significant expansion plans and wish them continued success as they work to broaden and diversify Iowa’s robust manufacturing sector.”