Newstrack: Oelwein expansion project on track

Background

OELWEIN — In November 2015, East Penn Manufacturing announced plans for a major expansion of its battery distribution operations in Oelwein.

For nine years, the Lyons, Pa., company has operated a distribution center at 301 Fifth Ave. SW in Oelwein that employs about 80 people.

East Penn Manufacturing said it would invest $68 million to construct a 318,600-square-foot plant that would fill, form, finish and distribute automotive batteries in support of its Transportation/SLI (starting, lighting and ignition) battery division. The facility, which would include warehousing, auxiliary equipment buildings, a fleet service building and personnel facilities, would add about 350 jobs.

In August 2015, the Iowa Economic Development Authority Board had authorized a financial package totaling about $3.1 million in tax credits, plus $1.75 million in direct financial assistance — half through an interest-free loan and the other half with a forgivable loan.

What's happened since

East Penn broke ground on June 28 on Industrial Drive near the RAMS Center in the Oelwein Industrial Park.

The facility will require changes in road access, water, natural gas, communication and electrical upgrades to satisfy electrical demand.

Deb Howard, executive director of Oelwein Chamber and Area Development, said construction of the battery plant and new distribution center is progressing on track to completion at the end of 2017.

'They have over half of it enclosed and construction has started on the other half of the building,' Howard said. 'The road to the plant has been completed.'

The company is hiring a few right now and taking applications, but doesn't want to hire broadly yet and have nothing for the new employees to do.

'There will probably be a big push on hiring people in about six months,' Howard said.

Howard said the expansion at East Penn is attracting inquiries from retailers interested in serving the additional employees and their families.

'We have some employers who are very concerned that they will be losing employees,' she said. 'We're doing the best that we can to keep everyone contented and happy with what is going on. It's a very positive thing for the community.'

Howard said the expansion at East Penn comes at a time when another Oelwein employer, Transco Railway Products, is planning to add 150 people to its workforce of 200.

'If people are unemployed in Oelwein, it's because they want to be unemployed,' Howard said.

An impending influx of job seekers to the community of about 6,400 residents is prompting work on housing options.

'We are working on a new housing development and we're working on some folks rehabilitating some existing homes,' Howard said. 'We don't have any ready solutions right now, but we have lots of ideas.'

l Comments: (319) 398-8366; george.ford@thegazette.com