Danisco plans $68M expansion of southwest Cedar Rapids plant

CEDAR RAPIDS — Danisco US Inc. on Tuesday was granted city financial incentives for a planned $68 million expansion of the company’s plant in southwest Cedar Rapids.

Danisco plans to build a new 47,000-square-foot food grade manufacturing building at its plant, which is located at 1000 41st St. Dr. SW.

According to city documents, the project is estimated to create 40 jobs, all above the state’s high-quality job wage threshold, which was $27.20 per hour in Cedar Rapids as of September 2024.

The Cedar Rapids City Council approved a resolution of support that authorizes financial incentives through a 10-year, 50 percent declining scale exemption of the increased value generated by the project.

Scott Mather, Cedar Rapids’ economic development project coordinator, said the plant building will generate about $2 million in taxes, with $900,000 of that exempted.

Work is planned to begin in March and is slated for completion in July 2026.

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Danisco is a subsidiary of International Flavors & Fragrances (IFF), which manufactures enzymes for biofuel production and food, animal nutrition and home and personal care products at its Cedar Rapids site.

Genencor opened the Cedar Rapids plant 1991. The name changed to Dupont Industrial Biosciences in 2011 when Danisco, Genencor’s corporate parent, was acquired by DuPont, which then merged with International Flavors & Fragrances in 2020.

Last March, Danisco announced it would build a 9,000-square-foot metal building as an on-site steam generator for company operations. The $22.2 million project was awarded $17.5 million capital investment project tax benefits through the Iowa Economic Development Authority’s High Quality Jobs program.

Last year’s expansion did not receive a tax abatement from the city because it was primarily machinery and equipment, and did not increase the taxable value enough to warrant an abatement.

Speaking at Tuesday’s meeting, council member Scott Overland said, “It wasn’t too far in the past where if we got a $68 million development or a brand-new business coming to town, we’d be jumping up and down and really excited.”

He said it was an example of “an international company that wants to continue to expand in Cedar Rapids and create these extremely high-quality jobs that make things hum here. I think it’s a credit to everybody involved in communicating with the company and encouraging them to expand here in Cedar Rapids.”