Agri Star gets state aid for $6.7 million expansion

State incentives of more than $600,000 will help kosher meatpacker Agri Star Meat & Poultry in Postville launch a $6.7 million expansion to add a line of oven-baked beef and poultry.

The grant was approved Thursday by the Iowa Department of Economic Development board.

The kosher meat processor expects to create 168 new jobs and retain 140 existing jobs with the new products.

Agri Star previously supplied only uncooked beef and poultry products, both kosher and non-kosher. It employed about 350 workers last month.

The board also approved three incentive packages for Corridor business expansions Thursday.

Cellular Engineering Technologies of Coralville was awarded $50,000 for the proof-of-concept stage on a new technology for manufacturing adult stem cells for use in medical research, drug development and clinical therapy.

The new technology is thought to be more efficient than existing technologies.

Sign Productions of Linn County was awarded $385,000 to relocate to a new building and acquire new manufacturing equipment as it recovers from the June 2008 Cedar River flood.

The assistance will help the sign company retain 74 jobs.

Stamats Communications, the Cedar Rapids-based higher education marketing company, was awarded $500,000 toward flood recovery costs.

The funds will help Stamats retain 93 jobs.

The awards to Sign Productions and Stamats were made from the Grow Iowa Values Financial Assistance Program.

Enterprise Zone tax benefits were awarded to two Davenport companies, Kraft Foods Global Inc. and Von Maur.

Kraft Foods Global is considering a $25 million expansion of its meat processing and slicing operation in Davenport that would create 45 jobs over a two-year period.

Van Mauer is planning to build an $8.6 million office, warehouse and distribution facility in Davenport to handle the growth of its Web-based fashion sales. The facility is expected to open in fall 2010.