DICKEYVILLE, Wis. — A Dubuque-based manufacturer has been awarded nearly $6 million in tax credits to assist with the construction of a new foundry in southwest Wisconsin.

The Wisconsin Economic Development Corp. board of directors on Tuesday approved awarding A.Y. McDonald Mfg. Co. up to $5.85 million in performance-based tax credits, a press release states.

The tax credits will go toward A.Y. McDonald’s ongoing project to build a 360,000-square-foot brass foundry in Dickeyville. A.Y. McDonald plans to invest “at least $340 million in Kieler and Dickeyville and create 173 high-paying jobs over the next five years,” the press release states.

“This new foundry project not only demonstrates a commitment to our industry but more importantly, a commitment to our people,” A.Y. McDonald CEO Rob McDonald said in the release. “We made the commitment early on to build our next foundry where our current foundry co-workers live, and that is right here in the tri-state area.”

The release states that the Wisconsin Economic Development Corp. board approved and submitted to the Wisconsin State Legislature Joint Committee on Finance for review a plan by which A.Y. McDonald is eligible for performance-based enterprise zone tax credits “if it creates a specific number of new jobs and meets the investment criteria.” The committee has 14 days to review the creation of a new enterprise zone, and one automatically will be created unless the committee takes action.

A.Y. McDonald is based in Dubuque and manufactures water works brass, plumbing valves, pumps and natural gas products. The Dickeyville foundry will be the fourth foundry built in the company’s 167-year history and its first in Wisconsin. Officials broke ground on the project last year.

The new foundry is expected to be fully operational in 2026, at which point the Dubuque foundry on Chavenelle Road will be decommissioned and workers there will be transferred to the Dickeyville location. The press release notes that A.Y. McDonald officials also plan to expand the use of an existing Kieler facility to support manufacturing operations.

The company headquarters will remain in Dubuque, as will the machinery and assembly operations.

The release also states that the Village of Dickeyville in 2023 created a tax increment financing district to help with public improvements for A.Y. McDonald’s foundry project.