An estimated $223,061 worth of state tax benefits were awarded last week to IML Containers for the construction of their new Le Mars facility, which is scheduled to be built within the next two to three years and cost more than $9.8 million dollars.
This will be the first U.S. facility for the Europe-based company which manufactures thin-walled plastic packaging used mainly in the food industry.
The recently awarded tax credits come through the Iowa Department of Economic Development (IDED) High Quality Job Creation Program, which requires IML Containers' facility here to meet four pre-determined requirements.
The first is that the company must offer a pension or profit sharing plan to full-time employees. Second, IML Containers must produce or manufacture high value-added goods or be in one of the state's targeted industries--plastics is one of these. Thirdly, the business must pay 80 percent of the cost of standard medical and dental insurance plans for all full-time employees at the facility, and finally, they must have an active productivity and safety improvement program for their managers and workers.
With their new facility here, IML Containers plans to create 27 jobs, one of which qualifies as a high quality job, accorded to IDED standards for Plymouth County. To meet those qualifications, that job must have a starting wage including benefits equal to or greater than $19.65--which IDED found to be 130 percent of the average Plymouth County wage.
Approximately $42,125 of the estimated $223,061 in tax credits would come through a refund of sales, service or use taxes IML Containers will pay during the construction of their facility.
The remaining $180,936 would be an investment tax credit, equal to two percent of the qualifying portion of IML Containers' investment. Those funds are scheduled to be paid out over a period of five years.
Tina Hoffman of the Iowa Department of Economic Development said that at this point, these numbers are estimates of the maximum benefits for IML Containers and may be subject to change.
Le Mars will be the company's first U.S. location, while they operate 12 other facilities throughout Europe and one in Canada. An estimated 95 percent of their business is dedicated to the U.S. market.
Le Mars proved to be a select location in part due to an existing working relationship between IML Containers and Well' Dairy, Inc.
Currently the company is leasing space from Le Mars Public Storage, Inc. in the Killeas Industrial Park and they hope to hire 10 people to work in their Le Mars facility by the end of next month.