The Iowa Economic Development Authority on Friday approved $1.5 million in direct economic assistance to Arconic Inc. in Riverdale for the purchase of new machinery and other capital investments amounting to nearly $160 million.
The capital upgrades, which the state says will take place over the next two years, is just the latest investment at the plant.
Arconic announced earlier this year that it had completed installation of the world's largest aluminum plate stretcher at its Davenport Works plant in Riverdale.
That, in itself, was a $150 million investment.
This latest project involves the purchase and installation of a new horizontal heat treat furnace, according to state documents. The installation will necessitate updates in other parts of the plant, including support equipment and information technology infrastructure, the state said.
The project will involve 30 new jobs and the retention of 250 others at a qualifying wage of $18.30 per hour, the state said.
Contacted Friday afternoon, an Arconic spokesman said details of the project would be released Monday.
The award for the Arconic project was one of several the state announced on Friday. The other projects were in Swisher, Fort Dodge, Urbandale, Newton, Ames, Iowa City and Sioux City.
In addition to the $1.5 million in direct assistance for Arconic, the state approved about $4.3 million in tax credits for the project.
The $1.5 million in assistance is in the form of a forgivable loan, with the rest of the package including $3 million in investment tax credits, $1.2 million in sales, service and use tax refunds and a research credit worth $90,000. The city of Riverdale also plans to provide tax increment financing with an estimated value of $3.5 million over 17 years, according to the state.
In addition to the $159.6 million in capital investment, the state said the project also will include a $3 million investment in research and development.
Construction and installation on the project is scheduled to begin in December, according to state documents, with completion scheduled for the second quarter of 2019.