MN: Vista Outdoor’s Federal Cartridge to Invest $33.9M, Upgrade, Hire 50
15 Nov, 2016
Federal Cartridge Co. announced plans to create 50 jobs and invest $33.9 million on upgrades and capacity expansion at its manufacturing facility in Anoka.
The ammunition maker said it will update machinery and equipment and will renovate its production plant, including improving utilities and the heating, ventilation and air conditioning system. The new jobs will be created over the next two years and pay total wages of more than $17 an hour.
The Minnesota Department of Employment and Economic Development (DEED) is supporting the project with a $258,000 grant from the Job Creation Fund and a $900,000 loan from the Minnesota Investment Fund. The loan may be forgiven if the company meets its hiring and investment commitments.
“Federal Cartridge has been producing ammunition for hunters and other shooting-sports enthusiasts for nearly a century,” said DEED Commissioner Shawntera Hardy. “With improved equipment and facilities, the company will be positioned for continued growth in a competitive industry.”
“Minnesota is home to proud hunting and shooting sport traditions, with more than 570,000 hunters in the state. I thank Federal Cartridge, a company with a rich Minnesota history of its own, for its ongoing commitment to Anoka,” said Lt. Governor Tina Smith. “This expansion will create good jobs for Minnesota workers and their families across the north metro. It’s also a testament to the benefits of public-private collaborations.”
“Federal Cartridge has been a longtime community partner and asset for the city of Anoka,” said Mayor Phil Rice. “The city is excited that we could assist Federal Cartridge in obtaining funds to improve their facility and provide additional employment opportunities. It’s a win for Federal and for the city of Anoka.”
“Vista Outdoor and Federal Cartridge have a deep and rich history in Anoka,” said Bob Keller, shooting sports president for Vista Outdoor. “We appreciate the state and city support in response to our multiyear ammunition capacity expansion investment. We are committed to improving the communities where we work and live and value these local partnerships. With nearly 2,000 dedicated and highly skilled employees at our Minnesota facilities, we look forward to adding jobs as our expanded capacity comes online.”
Federal Cartridge Co. was founded in Anoka in 1922 by Charles Horn. The company manufactures a complete line of shotshell, centerfire and rimfire ammunition and components.
Federal Cartridge is owned by Vista Outdoor, a leading global designer, manufacturer and marketer of consumer products in the growing outdoor sports and recreation markets. The company’s products are sold at leading retailers and distributors across North America and worldwide. Vista Outdoor is headquartered in Farmington, Utah, and has manufacturing operations and facilities in 13 U.S. states, Canada, Mexico and Puerto Rico along with international customer service, sales and sourcing operations in Asia, Australia, Canada, Europe and New Zealand. For news and information, visit www.vistaoutdoor.com.
The Job Creation Fund, which was first proposed by Gov. Mark Dayton in 2013, is a pay-for-performance program that provides funding to businesses after they meet certain criteria, including minimum requirements for job creation and private investments. Under the program, businesses must create at least 10 full-time jobs and invest at least $500,000 to be eligible for financial assistance.
Since the Job Creation Fund was launched in January 2014, DEED has awarded $32.4 million for 73 business expansion projects in Minnesota. Companies have committed to creating 4,154 full-time jobs and investing $905 million to expand.
More details about the program are here.
The Minnesota Investment Fund awards loans that businesses can use for improving their operations and hiring additional workers. Program funds are disbursed to local governments and then provided as loans to businesses. Last year, the program awarded $11.2 million in loans to 21 businesses. Those loans resulted in more than 1,700 jobs and attracted $1.4 billion in private funding.
More details about the program are here.
DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website or follow us on Twitter.