Czech Company Plans Tire Factory in Charles City

By Dave DeWitte, Reporter

Tools

By Becky Ogann

Story Created: Aug 20, 2010 at 9:23 AM CST

Story Updated: Aug 20, 2010 at 9:23 AM CST

CHARLES CITY, Iowa - A Czech tire manufacturer received a $924,000 grant Thursday, August 19, to locate its first North American factory in a Charles City plant.

CGS Tires US plans to manufacture agricultural and industrial tires at the former Winnebago Industries plant in Charles City.

The grant from the Grow Iowa Values Fund will support 154 of th total jobs to be created at the plant, according to the Iowa Department of Economic Development.

CGS will invest $43.8 million in the project, which involves reconfiguring the former Winnebago factor for production of radial tractor tires, harvester tires and other tires.

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

The board also approved an awad of $50,000 and tax benefits from Iowa’s Enterprise Zone program to help American Profol add another product line in Cedar Rapids.

The new production line is expected to create 10 jobs at American Profol, a subsidiary of Germany-based Profol Kunstoffe GmbH.

Demand for the cast polypropylene films made at American Profol have exceeded production capacity. The materials are used for products such as adhesive-coated tape heat-sealed bags and printed banners.

Other project awards approved Thursday included:

- A $310,900 award and a $129,100 award to Sedgwick Claims Management Services Inc. from the Grow Iowa Values Fund for expansion of the company’s Dubuque facility and establishment of a new location in Bellevue.

Sedgewick is a third-party administrator of workers’ compensation, liability, disability and other claims. The $310,900 award will support 44 of 106 jobs to be created in Dubuque and the $129,1000 award will support the creation of 44 jobs at the Bellevue location. Sedgewick Claims was also approved for tax incentives through the Enterprise Zone and High Quality Jobs Program.

– A $75,000 award and tax benefits from the Enterprise Zone program to Hy-Capacity in Humboldt for expansion of its current facility and the creation of 13 jobs.

Hy-Capacity is a remanufacturer of agricultural equipment components such as clutches and water pumps. It expects to create a total of 28 jobs and spend $1.53 million on the prjoect, adding 30,000 square feet to its facility.

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