IEDA board approves award for Japan-based company to expand to Iowa
Board OKs assistance to three companies that will create 76 jobs
The Iowa Economic Development Authority board on Friday approved awards to three established companies, including Spiber America LLC, which will expand its operation to Clinton. It also approved assistance to five startups.
According to a news release, Spiber is a subsidiary of Japan-based Spiber Inc., a biotech company that produces lab-grown proteins, such as spider silk, for use in clothing and other products.
The expansion to Clinton is a partnership with ADM as part of a relationship between Iowa and Spiber that was solidified during a trade mission to Japan last year.
“I am proud to announce that Spiber is partnering with ADM to deploy state-of-the-art technology to Clinton County, bringing this concept to the United States for the first time. I look forward to building on this partnership as we work to broaden and diversify Iowa’s robust manufacturing sector,” Gov. Kim Reynolds said in the release.
In Iowa, Spiber America LLC will combine its technology with ADM’s infrastructure and expertise. The two companies partnered to modify and expand equipment at ADM’s bioprocessing biorefinery in Clinton, a more than $101 million capital investment supported by aid approved Friday by the IEDA board.
The board approved a $1 million forgivable loan through the High Quality Jobs Program. The award is based on performance, and the company will receive it when all conditions of the contract have been met.
When complete, the facility will be the company’s first to produce Spiber’s protein polymers, the release stated.
The project will create five jobs at a qualifying wage of $17.57 per hour.
Other awards approved Friday are:
- In Tolerance was awarded $102,750 in investment tax credits and $57,750 in sales, service and use tax refunds to expand in Cedar Rapids. The company manufactures build-to-print metal and plastic products for the aerospace, defense, medical, information technology and agricultural markets. The company plans to build an automated line to expand its capability and complete more work in Iowa. The project is an estimated $3.5 million investment, and will create six jobs at a qualifying wage of $23.20 per hour. In Tolerance also will receive a 10-year declining scale tax abatement valued at nearly $188,000 from the city.
- XL Specialized Trailers was awarded $336,000 in investment tax credits and $171,000 in sales, service and use tax refunds to expand its facility in Manchester, where it makes customized heavy-haul trailer solutions in the commercial and construction markets. The project, estimated at $7.3 million, will expand the company’s facility by 55,000 square feet to accommodate additional fabrication, paint, parking and office improvements. The expansion is expected to create 65 jobs at a qualifying wage of $21.43 per hour. According to board documents, XL Specialized Trailers will also receive a 10-year tax increment finance rebate from the city in an amount to be determined.
The IEDA board also approved awards to five startups:
- Qi Learning in Ames was awarded a $25,000 Proof of Commercial Relevancy loan for product refinement, market planning, key personnel and equipment. QI Learning promotes STEM through training, products and workshops for instructors.
- TapOnIt, a messaging-based technology company in Davenport, was awarded $250,000 from the Innovation Acceleration Propel fund for expanding the team and database and for product development. The company uses its TapOnIt technology database of consumers to promote deals from restaurants, retail and entertainment via text message.
- MC4L in Davenport was awarded a $100,000 Demonstration Fund loan for market planning and key personnel. The company creates products and services for colleges and universities which are developed from their proprietary dataset of college pricing information. According to board information, that technology provides more transparency for students and families seeking higher education.
- CartilaGen was awarded a $25,000 Investigative Proof of Commercial Relevance Loan. The company was founded around a medical technology developed at the University of Iowa. It produces novel therapeutics for post-traumatic osteoarthritis, helping to prevent the development of the disease at its earliest stages.
- Tractor Zoom in Urbandale was awarded $250,000 from the Innovation Acceleration Propel Fund for product refinement, market planning and key personnel. The mobile app and web-based platform streamlines the advertising process to make it easier for farmers to search auction inventory nationwide and build a database of comparable sales to assist in equipment valuation and industry trends.