PEOSTA, Iowa — A Peosta manufacturer plans to spend $20 million to upgrade its equipment and add more than 30 new jobs.
Camso Manufacturing, a subsidiary of Camso Holding USA LTD, which is a subsidiary of Michelin North America, was awarded $600,000 in tax credits by Iowa Economic Development Authority on Friday for upgrades at its Peosta facility.
The Peosta facility manufactures undercarriages for heavy equipment. An Iowa Economic Development Authority report states that the business “will be reworking its existing footprint in Peosta and purchasing new equipment to implement a wheel line, allowing for the processing of rubber or polyurethane molding on the outside of midrollers that are used within undercarriages.”
The project at Camso will create 33 new jobs, 17 of which qualified for the tax credits. Those 17 jobs will have a wage of $21.13 per hour, according to the project report, which also notes that Camso’s Peosta location had 175 employees as of Feb. 16.
“We’ve been blessed in Dubuque County, in particular, with existing businesses continuing to grow and provide high-paying jobs,” said Rick Dickinson, president and CEO of Greater Dubuque Development Corp. “This is more good news for the county.”
In response to a request for comment, officials at Michelin North America provided a statement noting the plan to invest $20 million in the Peosta facility, contingent on state approval, “for equipment and machinery throughout the next three years, consistent with our commitment to accelerating advanced manufacturing.”
Although the current labor market is tight, Dickinson said, companies such as Camso have continued to find ways to recruit employees to the area. He noted that there are a number of projects underway at area businesses that will be announced in the year ahead.
“I think 2022 is going to be a very strong year for manufacturing,” he said.
The report states that Camso plans to have its facility ready for the new line by the end of 2023 and to purchase the equipment by 2025.
Camso will receive $120,000 of its tax credit award annually over a five-year period, beginning this year. The credits come from the state’s High Quality Jobs program, which provides assistance to businesses to offset some of the costs to expand facilities.
Dickinson said Greater Dubuque Development Corp. worked with Camso officials to put together the report for Iowa Economic Development Authority.
Dickinson added that the business now known as Camso was one of the first recruited to the area after he took on a leading role at Greater Dubuque Development Corp. He said the company initially opened a Peosta facility in the 1990s and focused on making tracks for snowmobiles before transitioning to manufacturing undercarriages.
“It’s a great company with great leadership,” Dickinson said. “They think the world of their employees in Dubuque County.”