Worldwide Paper’s $103 million Cedar Rapids growth awarded $1.2 million from Iowa Financial De

Worldwide Paper at 4600 C St. SW in Cedar Rapids in October 2014. (Liz Martin/The Gazette)

CEDAR RAPIDS — Worldwide Paper’s $103 million growth of its Cedar River Mill facility was awarded $1.2 million in state tax incentives Friday, supporting its proposed growth of a extra sustainable construction that may cut back greenhouse gasoline emissions by greater than 20 p.c within the coming years.

The Iowa Financial Growth Authority board accredited tax credit for the corporate — one of many world’s main producers of renewable corrugated packaging and cellulose fibers — towards its new 20,000 square-foot facility on the prevailing mill website at 4600 C St. SW, adjoining to the paper machine buildings.

On the firm’s Iowa manufacturing areas, Worldwide Paper creates materials for fiber-based packaging merchandise. The important thing segments served embody e-commerce, processed meals and beverage, fruit and greens, protein, distribution and sturdy/nondurable items.

The undertaking was eligible for state incentives underneath Iowa’s high-quality jobs program, and in the end obtained $800,000 in funding tax credit and a $400,200 in gross sales, service, use tax refund.

“This can be a main funding in Cedar Rapids and a testomony to our financial growth and progress methods,” Metropolis Supervisor Jeff Pomeranz mentioned in a press release. “This undertaking demonstrates Worldwide Paper’s dedication to Cedar Rapids. We’re proud to help their funding and look ahead to the optimistic impression it can have on our neighborhood.”

In accordance with IEDA paperwork, the Cedar Rapids facility pays a $30.24 hourly wage — above the state’s high-quality jobs threshold of $25.20. The undertaking will maintain 240 jobs within the metropolis and create seven extra, in response to the town of Cedar Rapids.

The corporate congratulated its staff and thanked the town of Cedar Rapids and the state on Friday.

“This funding is a direct reflection of your exhausting work and dedication to our prospects and displays the corporate’s dedication to the neighborhood and our industrial packaging enterprise,” Jay Royalty, senior vice chairman, Containerboard at Worldwide Paper, mentioned of the staff.

The Cedar Rapids Metropolis Council final week accredited awarding metropolis incentives — a 10-year, declining scale exemption of the elevated worth the undertaking generates. Based mostly on the proposed funding, the town estimates the undertaking will generate $2.337 million in new taxes over a 10-year interval, of which $961,000 will probably be exempt.

Worldwide Paper’s Cedar River Mill situated in Cedar Rapids at present purchases course of steam from Alliant Vitality’s Prairie Creek producing station. By 2026, Alliant Vitality will now not burn coal at its Prairie Creek producing station, so this Worldwide Paper location will lose steam provide on Dec. 31, 2025.

The proposed undertaking will supply a brand new steam provide to allow Worldwide Paper’s continued operations on the Cedar River Mill. The undertaking requires the development of a two-story constructing to deal with the package deal boilers, water remedy methods and related supporting methods.

Moreover, the event would scale back Cedar River Mill’s whole carbon emissions as Worldwide Paper transitions away from bought steam utilizing coal-fired boilers to on-site steam manufacturing by way of the usage of two new pure gas-fired package deal boilers, in response to the IEDA. Water Therapy tools will probably be put in to supply water to the brand new boilers.

The brand new constructing will embody transitions for direct entry to the working and floor flooring. To accommodate the brand new construction and tools, in response to the IEDA, underground water, firewater and a course of sewer will probably be rerouted on the constructing website. A brand new pure gasoline line to the mill website will help the package deal boilers.

Ron Corbett, Cedar Rapids Metro Financial Alliance’s vice chairman of financial growth, mentioned the undertaking demonstrates the corporate’s help of the mill and the town.

“There was large neighborhood pleasure when the recycling paper mill was introduced again within the early Nineties,” mentioned Corbett. “Virtually 30 years later the dedication by Worldwide Paper continues with this newest $100 million funding.”

Of the $103 million capital funding, $20 million will go towards constructing growth and $83 million will cowl equipment and tools.

“Certainly one of our financial growth objectives is to retain and develop our neighborhood’s current companies. This funding checks all of the containers,” Mayor Tiffany O’Donnell mentioned in a press release. “Worldwide Paper is a frontrunner in useful resource restoration. This undertaking will guarantee a long-standing Cedar Rapids enterprise can proceed to serve our neighborhood’s sustainability objectives and supply high-quality jobs for our workforce.”

Website work is anticipated to start in November, with building beginning in November 2024. The brand new steam plant is slated to turn out to be operational on the finish of 2025 and will probably be examined to help mill operations by Jan. 1, 2026, in response to the IEDA.

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