Elkader manufacturer approved for state financial assistance

An Elkader manufacturer on Friday was approved for state financial help and tax credits to expand production and create 41 jobs.

The Iowa Economic Development Authority Board voted to approve $205,000 in direct financial assistance and tax incentives through the Enterprise Zone program to Caterpillar Elkader for a retooling project. The proposed project will result in a capital investment of $4.35 million.

Caterpillar Elkader manufactures ejector trailers and attachments for the rubber-tracked Caterpillar Challenger tractors. Peoria-based Caterpillar acquired E-Ject Systems of Elkader in 2008.

The IEDA Board also approved tax crerdits under Iowa's High Quality Jobs Program for a $68 million expansion project at John Deere Des Moines Works in Ankeny.

The proposed project includes the construction of a 300,000-square-foot manufacturing facility that will produce self-propelled sprayers.  Deere plans to invest $35 million in construction costs for the project, along with $32.8 million in machinery and equipment and $45 million in research and development expenditures.

The expansion will retain 400 jobs, 134 of which are eligible for the tax credits.

A.Y. McDonald Manufacturing Co.'s proposed expansion in Dubuque was awarded direct assistance of $136,000 and tax benefits y the IEDA Board through Iowa's High Quality Jobs Program. The company, which manufactures waterworks brass, high pressure gas, and plumbing and pump products, has operated in the state for more than 155 years. 

The project will expand the company's existing facility in Dubuque to accommodate additional manufacturing machinery and equipment to produce a complete line of no-lead brass products in reaction to the Reduction of Lead in Drinking Water Act, recently passed by Congress. The law will reduce the allowable lead content of wetted surfaces in drinking water pipes, pipe fittings, and plumbing fixtures by 2014.

The Dubuque company expects to create 17 new jobs and make a capital investment of $2.6 million.