WI: Ironwood Plastics to Invest $19M, Add 80 Jobs at Two Rivers Facility
3 Oct, 2014
Ironwood Plastics Inc., which makes custom-molded plastic parts, is expanding its operations in Two Rivers—a $19 million project that ultimately is expected to triple the size of its workforce by creating 80 new jobs.
Ironwood’s current facility in Two Rivers is near capacity and the expansion project will enable the company to meet its existing needs as well as accommodate future growth.
“I’m excited to join citizens from across Two Rivers and Manitowoc County in celebrating the expansion of Ironwood Plastics,” said Lieutenant Governor Rebecca Kleefisch, who accompanied company and local officials today in making the expansion announcement. “This is another great Wisconsin success story, as more of our friends and neighbors find jobs at a wonderful Wisconsin company.”
Ironwood president Rick Faustich added: “With Ironwood’s current rate of growth, more plant capacity was essential, and we feel very fortunate to be able to expand into a top-quality building the size we were seeking adjacent to our existing high-performance plant. The ability to leverage the talents of our current workforce at the new building and the participation of Two Rivers and the state of Wisconsin added to the attractiveness of the Two Rivers location, among facility sites we considered.”
The first phase of the expansion project involves purchasing an existing 27,000 square-foot building next door to the existing facility and installing additional production machinery. This $6 million investment will occur over the next year and ultimately is expected to result in 40 new jobs.
A potential second phase will involve a building expansion and additional production equipment, and is expected to occur within five years. Phase 2 will require an estimated $13 million investment and is expected to create another 40 jobs.
To help secure the new jobs, the Wisconsin Economic Development Corporation (WEDC) is providing Ironwood Plastics with a $400,000 zero-interest loan. If the company creates 80 new jobs, retains its existing 34 positions and makes at least $19 million in capital investment, $200,000 of the loan will be forgiven.
“WEDC is pleased to support this project, which not only addresses Ironwood Plastics’ current operational needs, but also positions the company for future expansion as the economy continues to grow,” said Reed Hall, secretary and CEO of WEDC, the state’s lead economic development organization. “With this award, WEDC continues to show its commitment to help grow the economy in Manitowoc County. Since 2012, WEDC has provided more than $3.9 million in awards to Manitowoc County companies to help them create or retain nearly 900 jobs.”
The City of Two Rivers is also assisting with the project. It will invest $120,000 in 5.8 acres of vacant land, which will be deeded to the company for $1 upon completion of Phase 1 and after Ironwood has created and retained at least 40 new jobs for one year.
“The city partnered with the WEDC to provide an incentive package that convinced Ironwood Plastics to pursue this expansion in Two Rivers,” said City Manager Greg Buckley. “Ironwood’s purchase of the former Omega Manufacturing building, combined with the acreage being provided by the city, will result in the company having two manufacturing plants on a 12-acre campus in Two Rivers. This lays the foundation for further expansion in our community by this financially strong, growing company.”
Ironwood Plastics, which was founded in 1979, has two state-of-the-art facilities that deliver quality custom injection molded products. Founded by the Stephens family of Ironwood, Michigan, its first facility was in that Upper Peninsula community. The Two Rivers plant opened in 1987.
In December 2010, Ironwood was acquired by CTB, Inc. of Milford, Indiana, a Berkshire Hathaway company.
Ironwood Plastics has built its reputation on taking on the most difficult projects in the industry with an emphasis on insert molding and engineered materials for the automotive, electronics, manufacturing and medical industries.
About the Wisconsin Economic Development Corporation
The Wisconsin Economic Development Corporation (WEDC) leads economic development efforts for the state by advancing Wisconsin’s business climate. WEDC nurtures business growth and job creation by providing resources, technical support and financial assistance to companies, partners and communities in Wisconsin. WEDC has four focus areas: business and industry development, economic and community development, entrepreneurship and innovation and international business development. Together with more than 600 regional and local business development partners, it represents a highly responsive and coordinated network. Visit www.inwisconsin.com or follow WEDC on Twitter @_InWisconsin to learn more.