Simonsen Iron Works, a metal fabrication company in Spencer, had a funding request approved by the Iowa Economic Development Authority Board. The $200,000 float loan will allow the company to develop a new product focus in the skid steer attachment accessory category.
Simonsen Iron Works had previously announced plans to purchase South Dakota-based KW Manufacturing and move its skid steer attachment production to its operation in Spencer, where the company has an established 140,000-square-foot manufacturing plant. As part of the added production plans, Simonsen is reportedly planning a $940,000 expansion to the existing plant.
Attempts to reach Simonsen Iron Works President and CEO Robert Davis for comment were unsuccessful Thursday.
Cycle Country Accessories Corporation, of Spencer, became Simonsen Iron Works Inc., following the sale of the Cycle Country ATV accessories product line at the end of 2011.
"We plan to acquire at least a company a year that would fit and grow what we have here," Davis said in early January, following the sale. "This isn't meant to be subtractive, but actually allow us to do more in that facility."
"In the coming months, we expect to make some more announcements that will be positive," he suggested at the time.
Information from Simonsen suggested the KW Manufacturing acquisition gives it access to a new market that could bring two or three acquisitions of similar size over the next three years. The project would support 41 jobs that pay about $37,000 annually.
The Spencer-based company, which manufactures outdoor recreational and agricultural products, is expected to create nine jobs, of which six are incented, and retain 32 jobs, five of which are incented.
The IEDA board held a telephonic meeting Thursday on three of seven projects that were to be considered at a Dec. 20 meeting that was cancelled due to weather.
Thursday's awards will assist in the creation of 96 jobs statewide, retention of nine jobs and will result in over $9.9 million in new capital investment for the state.